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]

marzio said:
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 🙂
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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]

Cyprus Business Expert said:
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.
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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]

erni said:
It does not change a lot for me.
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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.

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[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.