The Commission has formally requested that Cyprus implement adaptations of certain EU tax rules to take into account Croatia’s accession to the EU.

The adapted legislation includes the Parent-Subsidiary Directive, the Mergers Directive and the Interest and Royalties Directive – all of which are intended to prevent double taxation within the Single Market. Member States were required to implement these changes by the time Croatia joined the EU on 1 July 2013. However, Cyprus has not notified the Commission of any measures it has taken to this end. The request is in the form of a Reasoned Opinion. In the absence of a satisfactory response within two months, the Commission may refer Cyprus to the EU Court of Justice.

For more information see the Commission’s website.