State of use of AI tax systems
As of October 2024, there are no publicly documented use of tax machine-learning algorithms in the Republic of Cyprus.
Further, the Cyprus tax administration reported not to use artificial intelligence in the OECD Tax Administration Series 2023.
Presently, the Cyprus tax administration is the only revenue agency that did not disclose the use of machine learning. With Bulgaria, Croatia and Malta, Cyprus exhibits the lowest level of maturity in the use of AI by EU tax administrations.
In February 2024, Tax Commissioner Sotiris Markidis announced that the Tax for All service initiative would include machine learning components, without specifying which functions would be performed. The Tax for All initiative is planned to be operational by the summer of 2025.
