Cyprus and Eurogroup (together with the International Monetary Fund) reached an agreement on 25 March 2013 on a package of measures intended to restore the viability of the financial sector and sound public finances over the coming years.
The planned Tax measures (subject to approval by the Cyprus Parliament) include
- a) The increase of corporate tax rate from 10% to 12,5%
- b) The increase of special contribution on passive interest received by tax residents
from 15% to 20% or 25% (no corporate income tax is paid on such interest).
Despite the planned changes in taxation, the favorable environment of Cyprus for the international business companies (IBC’s) remains significantly unaffected, still offering the following benefits.