Changes To Tax Rates Have Limited Impact

Main changes

In accordance with its agreement with international lenders, Cyprus has made a number of changes to its tax rates.

Increase in corporate tax rate

With effect from January 1 2013, the corporate tax rate has increased from 10% to 12.5%.

Transfer and carry forward of tax losses by credit institutions

With effect from March 25 2013, in the event of a transfer of operations, assets, rights or obligations from one credit institution to another under the Credit Institutions Resolution Law, any accumulated losses of the transferor at the date of the transfer will be transferred to the acquirer. The acquirer may use such losses for up to 15 years from the end of the year in which the transfer took place.