GOVERNMENT plans to introduce a €1,000/annum tax on profitable companies for two years have been received positively by the Chamber of Commerce and Industry (KEVE).
The government estimates that if around 100,000 of the companies registered in Cyprus pay this tax it will result in an inflow of some €100 million/annum into the state’s coffers.
There are approximately 170,000 companies registered in Cyprus; 70% of these are foreign and 30% are Cypriot. But the tax will only be levied on those companies that have returned a profit in the last three years.
Plans to increase property taxes were also discussed, but no decision was reached. Chairman of the employers’ federation Filios Zahariades said that “There was a preliminary discussion, which we will continue to see how the immovable property tax will become better and fairer, and we will revisit the matter.”
- Those who own property up to a value of €171 thousand do not pay Immovable Property Tax.
- Those with properties valued between €171 thousand and €427 thousand pay 2.5‰
- Those with properties valued between €427 and €854 thousand pay 3.5‰ and
- Those with properties valued at €854 thousand and above pay 4‰.
Immovable Property Tax is calculated on the market value of the property as at 1st January 1980 and is paid annually to the Inland Revenue Department.
Last year, parliament rejected government proposals to raise an additional €80 to €100 million by increasing the Immovable Property Tax paid by some 1,800 of the Island’s largest land-owners.