en | hu | ru | bg | ro | tr FacebookTwitterGoogle+LinkedInYouTubeInstagram
+ 357-24-636-919
+ 44-20-7556-0900
NEWS

Sign up for a free consultation
Subscribe to our newsletter
Request a return call
Downloadable brochures
Request a brochure
Newsletters
5 Minutes Offshore
Why LAVECO?
How to order a company from LAVECO Ltd
Latest news
Currency exchange rates: USD/1 unit
2017.12.12
HUF 0.0038
GBP 1.3367
CHF 1.01
RUB 0.0169
HKD 0.1281
JPY 0.0088
CNY 0.1511
CAD 0.7777
AUD 0.7526
BRL 0.3052
EUR 1.1796

Important Information

Cyprus Considers Corporate Tax Break To Retain Business


08/04/2013

Cypriot authorities are considering introducing a new tax exemption on reinvested corporate profits in a bid to prop up the island's economy, and may also authorize the establishment of local casinos to support fiscal consolidation efforts.

The measures were promoted by Cypriot President Nicos Anastasiades in announcing a new twelve-point economic recovery plan, drawn up to ensure that Cyprus's small island economy remains afloat despite the heavy losses depositors with funds over EUR100,000 will incur as a result of an EU-funded bailout. Laiki Bank will merge with Bank of Cyprus, and depositors with funds above EUR100,000, including Cyprus's largest businesses, face losses topping 60% and delayed access to their funds.

It is unclear whether the European Union will permit Cyprus to exempt reinvested corporate profits. The measure will erode Cyprus's corporate tax base, diminishing the impact of a corporate income tax rate hike, from 10% to 12.5%, included in the nation's austerity plans as a precondition to securing an EU bailout.

 


Related jurisdictions:
Cyprus
Top