Investors give vote of confidence to Cyprus' proposed new tax framework

The business world has given a vote of confidence to the under development new tax model for Cyprus, with business entities finding that the tax reform proposed by the University of Cyprus’ Economics Research Center (CypERC) is a move in the right direction and strengthening the country's competitiveness.

The positive lens through which the local business scene stakeholder view the upcoming tax reform was demonstrated by a panel discussion entitled ‘Key Stakeholders Discuss the Cyprus Tax Reform’ held within the framework of the 8th Cyprus International Tax Conference on 11 March and with a common denominator being - among other things - that tax reform is a necessary and crucial project for the local economy.

The panel participants Evgenios Evgeniou, Chairman, Invest Cyprus, Valentinos Polykarpou, General Manager at Wargaming & Chairman of TechIsland, Stavros Stavrou, President, Cyprus Chamber of Commerce and Industry (CCCI), and Demetris S. Vakis, First Vice Chairman, Cyprus Employers and Industrialists Federation (OEB) shared their positions and expectations from the upcoming changes to the island's tax framework.

Evgenios Evgeniou indicated that there is constant communication with investors, who function - as he characteristically stated - as ambassadors of the country.

As he said, the proposals for the reform meet the needs of investors, both those already active in Cyprus and those considering investing in the country in the future.

Evgeniou pointed out that the 15% corporate tax enhances competitiveness and that Cyprus remains an attractive investment destination. “For investors, it is acceptable and at the same time removes the cloud of uncertainty that existed for years over Cyprus,” he noted, while making special reference to the maintenance of the framework for intangible assets (IP Box).

The Chairman of Invest Cyprus called on all stakeholders to proceed immediately with the implementation of the reform, avoiding delays that could create further uncertainty.

Valentinos Polykarpou stated that Cyprus is following a path of development through tax reform, emphasising that the processes that have taken place are moving in the right direction.

He also pointed out the importance of maintaining a balance between attracting foreign investment and supporting local businesses, which have contributed to the Cypriot economy over time.

Polykarpou described tax reform as a complex, but necessary task.

Stavros Stavrou referred to the conflicting views surrounding tax reform, saying that it is normal for there to be different approaches, as Cyprus is a competitive economy.

He underlined that the CCCI considers the reform to be a balanced effort, with a positive impact on the business community and the economy as a whole.

"The new framework strengthens economic activity and will make the Cypriot economy even stronger," he noted.

Demetris Vakis also described the reform as positive in its general context, stressing that continuous improvement is required and that the present reform is a step in the right direction.

Vakis conveyed that Cyprus must remain a solid base for business and continue to offer a tax system that supports both local and international companies.

Finally, he emphasised that Cypriot businesses now have the opportunity to expand internationally and utilise the new reality to their advantage.

The panel discussion was moderated by the General Manager of ICPAC Kyriakos Iordanou and took place as part of the 8th Cyprus International Tax Conference, which was held in Nicosia on 11 March.

(Source: InBusinessNews)