EU TAX DIRECTIVES
Cyprus has fully adopted the EC Directives amongst which those which aim to achieve a uniform taxation policy between the 25 Member States. The major EC Directives which have been consolidated in the Cypriot taxation Laws are the following:
- EC Parent/Subsidiary Directive – Aims to ensure no taxation in transactions between parent and subsidiary companies situated in different Member States
- EC Mergers Directive – Aims to ensure no taxation on company reorganization between different Member States
- EC Interest and Royalty Directive – Aims to reduce withholding taxes on payments of interest and royalties between Member States.
- EC Savings Directive – Aims to ensure taxation of interest income in one EU Member State.