Cyprus Approves Law for ATAD Interest Limitation, CFC, and GAAR Rules

On 5 April 2019, the Cyprus House of Representatives reportedly approved a law for the transposition of certain measures of the EU Anti-Tax Avoidance Directive (ATAD). This includes the ATAD interest deduction limitation rules, controlled foreign company (CFC) rules, and general anti-avoidance rule (GAAR). Exit tax and hybrid mismatch rules are to be transposed through separate legislation.

Interest Deduction Limitation

The key points of the interest deduction limitation include:

• The ded…