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Cyprus Banks Advocate For Streamlined Supplementary Tax Declaration Process

by THEFUTURE.TEAM

September 19, 2025

Simplified Declarations For Exempt Entities

The Association of Cyprus Banks (ACB) has called for a simplification of the declaration process under the supplementary tax regime. The ACB’s submission, part of a public consultation on amending the Administrative Cooperation in Taxation Law from 2012 to 2025, emphasizes reducing the administrative burden on companies that ultimately incur no additional tax under the new rules.

Targeted Relief For De Minimis And Multinational Entities

ACB’s comments underscore the need to tailor the declaration process for companies exempt under the de minimis rule and for multinational groups in the early stages of international operations. According to the association, if a company qualifies for exemptions that result in a zero top-up tax, the declaration should be adapted to recognize such cases, thereby eliminating unnecessary fields and significantly reducing the compliance workload.

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Clarifications On DAC9 And Submission Protocols

In addition to advocating for simplified declarations, the association has requested further clarifications regarding the draft declaration annexed to the bill. Key issues include the method for submitting supplementary tax information, whether special tools or software will be required, and if manual submission remains an option. The ACB stressed the importance of timely notifications and provided guidance from the Cyprus Tax Department to help taxpayers adjust to any new technical requirements.

Enhancing Cross-Border Transparency

Another area of concern is the process for Cypriot groups to notify local tax authorities about foreign entities expecting to receive information through exchange channels. The association seeks confirmation on how the Cypriot parent entity can indicate that its foreign subsidiaries fall under the de minimis exemption. By clarifying these points before the implementation deadline, companies will have sufficient time to make the necessary adjustments.

Transposition Of The EU Directive And Broader Implications

The revised bill aims to transpose EU Directive 2025/872 (DAC9) into national law. In line with the new EU mandates, DAC9 introduces standardized reporting for the automatic exchange of top-up tax information, targeting a uniform declaration process across member states. With a June 30, 2026 deadline for the first top-up tax submission and an automatic exchange starting December 31, 2026, the directive also expands reporting obligations for financial institutions including banks, investment firms, fund managers, and insurance companies.

The directive and the accompanying national legislation represent a significant step toward enhanced transparency and streamlined compliance for multinational enterprises and large domestic groups. With all EU member states required to implement DAC9 by December 31, 2025, and effective from January 1, 2026, stakeholders are urged to prepare for the impending changes in the regulatory landscape.

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.