Cyprus Extends Application of Implementing Directive on Tax Residence and Permanent Establishment in the Context of the COVID-19 Crisis

The Cyprus Tax Department has issued Implementing Directive No. 07/2021 concerning the continued application of Implementing Directive No. 04/2020 of 27 October 2020. Implementing Directive No. 04/2020 addresses the impact of travel restrictions due to COVID-19 and provides that OECD guidance on the issue will be followed in determining whether tax residence is acquired, or a permanent establishment is constituted in Cyprus. Implementing Directive No. 07/2021 provides that Implementing Dire…