How OEB, CCCI and TechIsland viewed the proposed Tax Reform - Ready to give their input

Cyprus’ Tax Reform has entered the path towards its implementation, through specific steps and with a timeline set with the aim of it entering into force at the beginning of next year.

The countdown was marked by the presentation of the preliminary framework prepared by the University of Cyprus’ Economics Research Centre (CypERC), with the first assessment given by the business world indicating the correctness of the direction in which it is moving with regard to the goal of further strengthening businesses and maintaining Cyprus’ position as an attractive investment destination.

The Cyprus Chamber of Commerce & Industry (CCCI) and Cyprus Employers & Industrialists Federation (OEB) issued announcements that largely reflect their positive approach towards the overall result, despite reserving the right to take a detailed position on the individual aspects of the upcoming reform after first thoroughly studying CypERC’s proposals.

TechIsland's first response, which InBusinessNews requested and received, is in a similar context.

OEB’s initial reaction

Following its first reading of the proposal, OEB found that a very serious, in-depth, comprehensive and holistic study and processing of the tax data and challenges of Cyprus was carried out, both internally and in relation to Europe and the rest of the world.

OEB welcomes with particular satisfaction the abolition of the deemed distribution of dividends, while also noting that despite the fact that it itself suggested maintaining the corporate tax at 12.5%, the set of proposals appears to maintain the competitive advantages and attractiveness of the Cypriot tax framework.

The Federation emphasises the need to adhere to the timetables as presented, so that the new framework can be implemented as planned on 1 January, 2026, underlining in this regard that the country's fiscal consolidation process cannot be slowed down.

At the same time, the Federation expresses its intention to submit documented recommendations to the JOC and the government where necessary, after studying in depth and with the help of its experts the entire framework as presented.

The CCCI’s long-term demands

On its part, the CCCI welcomes the government's initiative to promote the modernisation and simplification of the country's tax system, indicating that the announcement of the recommendations indicate that we are entering the final stage for shaping the framework concerning Cyprus’ new taxation conditions.

Further pointing out that it has long called for tax reform, the CCCI states that it will study the details of the proposal and will provide a detailed position on its various aspects.

"The goal of all of us," the CCCI notes, "should be the development of the economy, the fair distribution of tax burdens, the strengthening of foreign investments, the modernisation of the tax system and the further simplification of tax procedures."

TechIsland: Suggestions in the right direction

TechIsland, who was asked by InBusinessNews to comment on what was presented said: “As an initial comment, as TechIsland, we consider the committee's recommendations for the tax reform to be in the right direction. The overall framework appears to safeguard Cyprus' position as an international hub for entrepreneurship and technology, aiming for a balanced approach to attracting foreign investment and supporting local businesses. We look forward to thoroughly examining the provisions of the proposed reform and submitting any suggestions, with the aim of maintaining and strengthening Cyprus' competitiveness on the global technology map.”

(Source: InBusinessNews)