In adaptation to GAAR, Cyprus has also established a tax treaty with Germany in 2011 through which both targeted and general bilateral provisions for specific and overall qualification for benefits, respectively, are established. This treaty contains specific reference to the application of domestic anti-avoidance rules.
As a member of the EU, Cyprus, as well as numerous other countries, are recommended (i.e. such recommendations are not binding upon Member States) common GAAR's by the European Commission, through their publication of An Action Plan to strengthen the fight against tax fraud and tax evasion (COM (2012) 722 final), though which it included two specific recommendations to address aggressive tax planning. Both of the recommendations address direct taxation only.
The first recommendation (in relation to instances of double non-taxation) is for the inclusion of a provision within Member State treaties such that income may only remain untaxed in a Contracting State if it is subject to tax in the other Contracting State (which may be either another Member State of a third country).
The second recommendation is for the adaptation of a common general anti-abuse rule within their national legislation.