NewsLocalCyprus’ more guarded response to global deal on corporate tax

Cyprus’ more guarded response to global deal on corporate tax

A global deal on corporate tax looks set to bring to a climax a deep-seated European Union battle, pitting large members Germany, France and Italy against Cyprus, Ireland, Luxembourg and the Netherlands.

Although the smaller EU partners at the centre of a years-long struggle over their favourable tax regimes, welcomed the Group of Seven deal on June 5 for a minimum corporate rate of at least 15%, some critics predict trouble implementing it.

Ireland, Luxembourg and the Netherlands rushed to welcome the long-fought for reform, but Cyprus had a more guarded response.

“The small EU member states’ should be acknowledged and taken into consideration,” the Mediterranean island’s Finance Minister Constantinos Petrides told Reuters.

The Tax Justice Network ranks the Netherlands, Luxembourg, Ireland and Cyprus among the most prominent global havens, but also includes France, Spain and Germany on its list.

The European Commission has long struggled to get agreement within the bloc on a common approach to taxation, a freedom which has been jealously guarded by all its 27 members, both large and small.

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