ICPAC submits 14 new suggestions for Cyprus tax system

GlobalData

Mon, Mar 24, 2025, 4:27 AM 2 min read

The Institute of Certified Public Accountants of Cyprus (ICPAC) has submitted its positions connected the projected taxation betterment to the Minister of Finance, Makis Keravnos, including a acceptable of 14 caller suggestions aimed astatine refining the taxation system.

The suggestions were made wrong the discourse of a caller consultation based connected the University of Cyprus’ Economics Research Centre's recommendations.

ICPAC has projected measures specified arsenic taxation nonaccomplishment transportation forward, qualifying refundable taxation credits, intelligence spot nexus regime, and incentives for overseas concern funds.

These suggestions are portion of ICPAC's effect to the government's taxation package, which the institute recognises arsenic limiting the taxation load connected taxpayers and businesses, portion consolidating the taxation base.

However, ICPAC has highlighted areas of concern, calling for a simplification of the taxation system, simplification of bureaucracy, and a much predictable taxation framework.

ICPAC underlined: “We besides expected to spot proposals that volition trim the ever-increasing successful caller years administrative compliance costs for tiny and medium-sized enterprises, which undoubtedly represent the backbone of the Cypriot economy.”

The institute supports the abolition of deemed dividend organisation and a 5% withholding taxation connected existent dividends for Cyprus taxation residents who are besides domiciled successful Cyprus.

ICPAC further stated: “Our basal presumption is to heighten the worth and credibility of Cyprus arsenic a concern destination of prime and quality, by continuously upgrading the merchandise and services offered, arsenic good arsenic by simplifying, strengthening and efficaciously implementing the country's interior infrastructure, processes and operations (beyond taxation), frankincense offering value-added services astatine a competitory cost.”

The institute has requested further accusation connected respective points, including the imposition of a higher withholding taxation complaint connected concealed dividend distributions and anti-abuse measures for close-structured companies.

ICPAC has besides expressed reservations astir lifting the firm veil and adjusting salaries to marketplace rates, citing the request for ineligible clarity and proportionality.

On the Non-Dom regime, ICPAC agrees with the rule but seeks further details, peculiarly connected the hold aft 17 years and the calculation of the yearly fee.

Additionally, portion supporting recommendations for the greenish modulation and integer transformation, ICPAC emphasises the request for much targeted measures.

"ICPAC submits 14 caller suggestions for Cyprus taxation strategy " was primitively created and published by The Accountant, a GlobalData owned brand.