Cyprus submits bill to fully implement the EU minimum tax for multinationals from 2026

The Cypriot parliament has received a bill proposing that the Qualified Domestic Minimum Top-up Tax (QDMTT) apply fully to large multinational groups from 2026, after the European Commission expressed dissatisfaction with the country’s 2024 law. This legislation, known as “Pillar Two,” sets a 15% minimum effective tax rate for multinational groups with annual revenues exceeding €750 million or large domestic group entities. The Finance Ministry said the domestic top-up tax would remain in place in 2025, with the fully coordinated qualified tax applying in 2026 to avoid retroactive tax liabilities.