The Cyprus Tax Department has announced the withdrawal of the guide titled “Cyprus Administrative Service Providers (ASPs) Are They FIs under FATCA and CRS (June 2017)”.
The department said the guide is abolished and will no longer apply from the date of publication of the announcement.
Organisations have been instructed not to rely on the guide when interpreting or applying their obligations under the Common Reporting Standard (CRS).
Organisations directed to updated framework
The Tax Department said organisations should instead refer to paragraph 10ter of the Consolidated Text of the CRS (2025), as well as the applicable legislative and regulatory framework governing CRS requirements.
It also clarified that references to the withdrawn guidance contained in the May 2020 Automatic Exchange of Financial Account Information Guidance Notes are no longer valid and will not apply from the date of the announcement.
The guidance notes will be updated to reflect changes arising from the revised CRS provisions.
Compliance checks and penalties
The Tax Department said it may conduct compliance checks under its powers and the applicable legislation to determine whether obligated organisations are meeting their CRS/DAC2 requirements.
Where an inspection identifies non-compliance, including incorrect or late submission of required information or failure to follow due diligence procedures, the department may impose administrative penalties provided for under the legislation.
The department called on obligated organisations to ensure full and accurate compliance with all requirements under the applicable CRS/DAC2 legislative and regulatory framework.
Also read: PAYE filing deadline extended to 30 November
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