Cyprus increasing corporate tax to 15%

[kkein]

Or so i have heard. Do you think this is going to happen? What impact will it have? Any chance companies will start fleeing to Malta or other jurisdictions?

 

[Marzio]

Well, i don't know if this is true but after Ireland said to increase CIT at 15% it's something that is not surprising.

I've also heard that Gibraltar is going to increase CIT to 12.5% but not sure when this will happen (if it will happen). For sure there's a trend in trying to uniform CIT to level the playing field but i guess we will always find ways to reduce taxes in more creative ways

 

[CyprusLaw]

Well, i don't know if this is true but after Ireland said to increase CIT at 15% it's something that is not surprising.

I've also heard that Gibraltar is going to increase CIT to 12.5% but not sure when this will happen (if it will happen). For sure there's a trend in trying to uniform CIT to level the playing field but i guess we will always find ways to reduce taxes in more creative ways

The will begin discussions for this early next year, so (a) we don't know if and when it will be implemented; (b) we don't know how it will be implemented; (c) any increase of the CIT will come with the introduction of other incentives.

 

[gnud]

Expect this to happen everywhere. After the corona spending and lost income governments need money.

 

[Ready to discuss]

The logic behind the change is the decision of G7 to implement an a minimum corporate tax rate to 15%.

Since Cyprus's Economy rely on the services offering to foreigner companies, new tax incentives will be implement.

 

[gnud]

The logic behind the change is the decision of G7 to implement an a minimum corporate tax rate to 15%.

Since Cyprus's Economy rely on the services offering to foreigner companies, new tax incentives will be implement.

The G7 requirement has a revenue threshold in billions.

 

[Tepesch]

They should make progressive tax system like Singapore, lower tax for smaller companies.

 

[Ready to discuss]

I agree with you.

However, If tax will be increased to 15%, dividends payable to local residents (Cypriots) will be exempted from taxation (SDC) (now is 17%).

For foreigners doing business in Cyprus, dividends payable was always free of tax.

 

[erni]

It does not change a lot for me.

 

[bizman]

It does not change a lot for me.

neither for me. 15% is still lower compared to many other EU countries. They have a awesome system for foreigners to do business in Cyprus.

 

[gnud]

For a holding company it changes nothing. Dividends received from a subsidiary in an EU country continue to be taxed with 0% both in that country and in Cyprus, and paying dividends to non-residents also remains at 0%. They're not taxable by the CIT.