Cyprus remains committed to international tax transparency through its ongoing implementation of the Common Reporting Standard (CRS), an OECD initiative designed to facilitate the automatic exchange of financial account information between jurisdictions. As a CRS participant since 2017, Cyprus requires financial institutions to report relevant account holder information to the Cyprus Tax Department (TD) annually.
In a recent announcement, the TD provided key clarifications regarding the CRS’s application to trusts. Depending on their structure and activities, trusts are classified under CRS as either Financial Institutions (FIs) or Non-Financial Entities (NFEs), each with specific reporting obligations. Notably, all Cyprus-resident trusts must now complete and submit a CRS questionnaire to the TD by March 31, 2025, irrespective of their reporting status.
To avoid penalties and ensure compliance with international tax regulations, trustees must carefully assess their obligations under the CRS framework. These developments further reinforce Cyprus’s role in strengthening global tax compliance and enhancing financial transparency.
For a more details, please refer to the full publication by our managing partner Elias Neocleous, along with Michalis Loizou and Adonis Zachariou, available on Lexology and Mondaq.
For further guidance, contact our team.
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