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Cyprus: Draft legislation amending Pillar Two framework

Would incorporate a qualified domestic minimum top-up tax (QDMTT)

November 5, 2026

The Directorate of Economic Policy and European Affairs, Tax Policy Unit, in July 2026 published draft legislation amending Cyprus’s Pillar Two framework.

The draft legislation would incorporate a qualified domestic minimum top-up tax (QDMTT) effective January 1, 2026, and make further changes following OECD guidance.


For more information, contact a KPMG tax professional in Cyprus:

Katerina Papanicolaou | katerina.papanicolaou@kpmg.com.cy

Marios Chrysanthou | marios.chrysanthou@kpmg.com.cy

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