Cyprus Confirms Support for Pillar 2 Side-by-Side Arrangement

The Cyprus Minister of Finance issued a release on 8 January 2026 concerning the Side-by-Side (SbS) arrangement for the Pillar 2 global minimum tax, which was recently agreed to by the BEPS Inclusive Framework. The statement notes that under Council Directive (EU) 2022/2523 of 14 December 2022, safe harbors, such as those in the SbS arrangement, may be applied if agreed to by all EU Member States. In this regard, Cyprus provides its full assurance and consent to the safe harbor rules.

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