Recent Changes To The Cyprus Tax Legislation

Cyprus has undertaken a series of reforms to secure Troika financial support. The following article considers the latest reforms in detail.

In November and December 2012 Cyprus enacted a number of changes to its corporate, taxation and financial regulatory laws in order to streamline its administration and demonstrate its commitment to the reforms proposed by the ''troika'' (the European Commission, the European Central Bank and the International Monetary Fund) negotiating a financial support package for the island. The legislative package included measures ranging from straightforward increases in tax rates to more complex adjustments to arrangements for exchange of tax information and the introduction of a new licensing regime for fiduciary and corporate service providers, as well as changes to indirect taxes, pensions and other government expenditure. In the following paragraphs we set out the main changes regarding business taxation, which, unless otherwise