Cyprus to introduce EU-mandated 15% tax rate for large multinationals

14:20 - 26 August 2024

Companies Reporter

Cyprus’ harmonisation with and implementation of the EU directive to impose a minimum tax rate of 15% on large multinational companies is expected to bring in over €200 million in additional revenues to the state coffers.

As Finance Minister Makis Keravnos said, speaking on Ant1's midday news show, the relevant harmonising bill has already been submitted to Cabinet and final decisions are expected within the next few days.

After being approved by the Cabinet, the proposal will be submitted for discussion and voting by the Parliament.

Indicating that with Cyprus’ harmonisation with the EU legistlation, companies with a turnover of €750 million or more will be taxed at 15% - instead of the 12.5% currently taxed - Makis Keravnos underlined that this is something that will bring about significant additional income for the Republic of Cyprus.

"An initial estimate is that there will be additional revenues of more than €200 million, maybe €250 million," the Finance Minister pointed out.

At the same time, Makis Keravnos appeared reassuring regarding concerns about the departure of large multinationals from Cyprus as a result of the increase in the tax rate.

In this context, he indicated that the 15% does not concern only Cyprus, which is worth noting that it is already late with its harmonisation, but all countries, as it is a directive adopted by the OECD.

"There is no concern that there will be an outflow of companies from Cyprus," Keravnos noted in this regard.

Also read: Commission calls on Cyprus to apply 15% tax rate on multinationals

(Source: InBusinessNews)

Cyprus to introduce EU-mandated 15% tax rate for large multinationals

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