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Cyprus: Announcements on implementation of Pillar Two framework

Including guidance on compliance obligations and applicable filing deadlines for Cypriot constituent entities (CEs)

June 17, 2026

The tax authority on June 15, 2026, issued two announcements on implementation of the Pillar Two framework:

  • The first announcement informs of the FAQs issued by the European Commission (EC) on May 29, 2026, based on which Cyprus is considered to have implemented a qualified income inclusion rule (IIR) for fiscal years commencing on or after December 31, 2023, and thus as of May 31, 2026, Cyprus is able to receive the top-up tax information return (TTIR) and is committed to exchange such information within the required timeframe under DAC9.
  • The second announcement provides guidance on the compliance obligations and applicable filing deadlines for Cypriot constituent entities (CEs)—applicable to fiscal years commencing between December 31, 2023, and December 31, 2024—and sets out the requirements for the submission of the TTIR, notifications, IIR top-up tax returns, payment of any top-up tax due, and filing deadlines.

Read a June 2026 report prepared by the KPMG member firm in Cyprus

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