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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.

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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.

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Industry Uproar Over Reduction in Electric Vehicle Subsidies

by News Editor

April 26, 2025

The recent move by the government to curtail subsidies for electric vehicles has stirred significant discontent among car importers in Cyprus. The Department of Road Transport (DRT) has slashed available grants under the Electric Vehicle Promotion Scheme as of April 23, leading to a rapid depletion of the subsidy pool and leaving many potential applicants disappointed.

Importers’ Concerns

According to the Cyprus Motor Vehicle Importers Association (CMVIA), the lack of transparency and failure to engage stakeholders prior to the decision have eroded trust in the government’s commitments. Importers now find themselves facing a precarious situation, with substantial stocks of electric vehicles and mounting promotional expenditures.

Public Interest and EU Compliance

Although the scheme aimed to support the transition to zero-emission transport until 2025, the DRT states that the curtailing of funds was necessary to comply with European funding terms, which warned against delays in vehicle deliveries. This decision has fueled market uncertainty despite the application portal experiencing dynamic changes.

Industry’s Ongoing Demand

The CMVIA refutes any claims suggesting waning interest in electric vehicles, underscoring the rapid exhaustion of available grants as proof of substantial demand. They highlight the importance of meeting Cyprus’s green transition targets, including putting 80,000 electric vehicles on roads by 2030.

While the total budget for subsidies saw an increase to €36.5 million in 2023, thanks to additional funding, ongoing difficulties in timely vehicle distribution have led to premature closures of applications. In response, CMVIA has called for urgent dialogue with the Minister of Transport to reassess the decision, fearing that it could endanger the future of e-mobility in Cyprus.