The Minister stated that increasing corporate tax in Cyprus from 12,5% to 15% will not significantly affect the foreign investments in Cyprus.
The main matter for the tax reformation to be examined are as follows:
- Increase of corporate tax from 12.5% to 15%;
- Reduction or abolition of the €350 annual company levy;
- Reduction of contribution on interest income;
- Reduction or abolition of the special defense contribution on the deemed and/or actual distribution of dividends;
- Adaptation of value-added tax rates based on the recent ECOFIN decision for products associated with public health and green digital transition;
- Implementation of carbon taxation with a gradual increase of taxation on fossil fuels and imposition of environmental levies.