The idea of raising the Cyprus corporate tax rate from 12.5% to 15% has been discussed at a meeting between Finance Minister Haris Georgiades and business executives.
According to media reports the minister also proposed tax changes to work as counterbalance incentives to businesses, such as reducing the dividend tax from 17% to 15%, abolishing stamp duty, reducing capital gains tax from 20% to 15% and the reduction of tax on interest from 30% to 15%.
The main argument of the government is that this increase will address allegations of money laundering and tax haven arguments, while also facilitating the double taxation arrangements of our country with other countries.
Official sources confirmed discussions on the issue, pointing out that it is indeed related to problems arising in the field of international financial services.
According to sources, by increasing the corporate tax rate to 15%, Cyprus will drastically reduce reputational problems without losing its competitive advantage.