Insider Economy Cyprus employers call for six tax reliefs

Cyprus employers call for six tax reliefs

The Cyprus Employers and Industrialists Federation (OEB) is asking for six tax reliefs amounting to €500 million annually, according to General Director Michalis Antoniou.

He also told journalists at a working breakfast this week that the proposed tax reliefs will pave the way for state revenue to increase by €650 million within three years, as well as open about 9,000 new jobs.

The proposals are the following:

—The employers’ contribution to the Social Cohesion Fund to be abolished

—The employers’ contribution to the Redundant Employees Fund and to the Protection of Employees’ Rights Fund in the event of an employer’s insolvency to be reduced from 1.2% to 0.6%. The redundant employees fund’s reserve on December 31, 2018 stood at €447 million

—Resetting the tax rate for natural persons to 30%

—Reduction from 30% to 15% of the national defense contribution on interest rate of deposits

—Abolition of the mandatory company fee of €350 to the Official Registrar

—Abolition or reduction of the deemed dividend distribution.

At the same time, OEB’s board chairman George Petrou said that conditions are now mature enough for tax reliefs in return to payments to the island’s fledgling General Health Scheme (Gesy) and increased contributions to the Social Insurance Fund. Because this is how businesses can maintain their competitiveness.

He also said that, as far as the economy goes, OEB’s priorities are to maintain fiscal discipline with the aim of continually improving Cyprus’ credit rating and enhancing the Public–Private Partnership.


Read more:



Top Stories

Tuesday will be breezy with rain and isolated thunderstorms

Tuesday will be breezy with rain, isolated thunderstorms and light snow falling on the top peaks of Troodos mountains. Winds will be westerly to south-westerly,...

162 new cases, five deaths announced on Monday

The Health Ministry announced the death of five persons due to COVID-19. This raises the death toll from the virus in Cyprus to 175,...

Where to get antigen rapid tests on Tuesday

The Health Ministry announced the following antigen rapid test sites for Tuesday, 19 January 2021: LIMASSOL Apostle Loucas Church, Agios Athanasios 08:30-16:30 Agios Stylianos Church, Linopetra 08:30-16:30 Cultural...

Searches for 70 year old woman missing at sea suspended due to bad weather

Searches to find a 70 year old woman missing off the Phiikoudes beach in Larnaca have been suspended due to extremely bad weather conditions...

Tourist arrivals plunge by 84% in 2020 in one of Cyprus’ worst tourist seasons due to Covid

Tourist arrivals in Cyprus reached a mere 631,609 plunging by 84.1% year on year in one of the worst ever season for Cyprus’ tourist...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...