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Harmonisation Of Multinational Taxation EU Directive Is Delayed

by THEFUTURE.TEAM

July 18, 2024

Cyprus is encountering delays in implementing the EU Directive on the disclosure of income tax information by certain multinational enterprises. This directive, EU Directive 2021/2101, aims to combat corporate tax avoidance by requiring multinationals to publicly disclose their income tax information, thus enhancing transparency and accountability.

The bill was submitted urgently to the House of Representatives following a reasoned opinion from the European Commission, which had noted Cyprus’s failure to meet the implementation deadline. The European Commission’s opinion highlights the importance of timely compliance with EU regulations to maintain consistency across member states.

Despite the urgency, the delay is not expected to have a significant impact on Cyprus’s economy. This is primarily due to the relatively small number of multinational enterprises operating within the country that would be affected by the directive. However, the delay underscores the challenges faced by Cyprus in aligning its national laws with EU standards, which is crucial for maintaining its reputation and compliance within the Union.

The directive’s implementation is part of broader EU efforts to ensure that multinational enterprises pay their fair share of taxes, particularly in jurisdictions where they generate significant revenues. By making income tax information publicly available, the directive seeks to deter tax avoidance practices and promote fair competition within the EU market.

The delay in Cyprus’s harmonisation process raises concerns about the country’s ability to meet EU regulatory standards promptly. It also highlights the need for enhanced legislative processes to ensure timely adoption of critical regulations. As the House of Representatives deliberates on the bill, it will be essential to address any underlying issues that may have contributed to the delay and to establish mechanisms to prevent future occurrences.

The successful implementation of this directive will not only align Cyprus with EU regulations but also enhance the transparency and accountability of multinational enterprises operating within its jurisdiction. This step is crucial for fostering trust among stakeholders and ensuring a fairer tax environment.

New Decrees For Blue Card And Foreign Students: Key Changes And Implications

by THEFUTURE.TEAM

December 20, 2024

The Ministry of Labor and Social Insurance has announced a series of new measures aimed at addressing the increasing demands of Cyprus’ labor market. These initiatives are designed to attract highly skilled professionals from third countries and broaden employment opportunities for foreign students in select fields, as outlined in the recent Decrees published in the Official Gazette of the Republic.

Attracting Skilled Professionals

One of the key updates is the introduction of a minimum annual salary for foreign professionals, which has been set at €43,632, 1.5 times the average gross annual salary in Cyprus. This salary threshold applies to individuals coming to work in sectors such as Information and Communication Technologies (ICT), pharmaceuticals for research purposes, and maritime industries (excluding skippers and crew).

Expanded Employment Options For Foreign Students

The new regulations also provide an update on the employment rights of foreign students. From December 2024, students from third countries will be able to work in Cyprus, with the new rules replacing the previous March 2024 start date.

Students studying ICT who have completed their first academic semester will be eligible to work in occupations related to their field of study, thereby gaining practical experience while pursuing their education.

In response to critical sector shortages, the regulations also clarify the specific occupations and salaries that Blue Card holders—third-country nationals—will be eligible for in Cyprus. The Blue Card, in line with the European Directive, allows highly skilled professionals to live and work in EU member states.

Strengthening The Labor Market and Economy

These updates are expected to bolster the supply of specialized workers in key sectors, addressing existing gaps and promoting the continued growth of Cyprus’ economy. At the same time, the new measures offer foreign students enhanced opportunities for professional development, facilitating their seamless integration into the country’s workforce.