Insider Business Services sector in Cyprus not concerned over Brexit

Services sector in Cyprus not concerned over Brexit

There is a lot of speculation over the UK leaving the EU, especially concerning ​​corporate tax and services. And this because the United Kingdom’s exit from the European family will give London the necessary flexibility to amend its fiscal framework, according to analysts.

The UK has already announced the reduction of corporate tax from today’s 19% to 17% as of early 2020.

But KPMG Cyprus Partner Costas Markides told Insider that this aspect should not be of particular concern  to Cyprus because the Mediterranean island does not compete with London when it comes to corporate tax.

Markides also said that Cyprus has already established itself as a credible regional financial service provider offering a variety of tax incentives while maintaining a low corporate tax rate. And this in combination with the very low cost of operating a company in Cyprus.

“Cyprus does not compete with London on this, the countries that will mostly feel the ‘threat’ of a reduced corporate tax in the United Kingdom are Ireland, Luxembourg, Belgium and the Netherlands,” he added.

Cyprus’ corporate tax was 10% in 2012 but after pressure from European partners it went to 12.5%. A couple of months ago, Finance Minister Harris Georgiades talked about the possibility of raising corporate tax to 15%, sparking a backlash from the business community. The proposal was dropped within 24 hours.

“Cyprus has repeatedly said that any discussion of adopting a common tax rate within the EU does not find us in agreement. Each Member State should be free to decide its fiscal policy according to its needs and, of course, according to the economic model it implements,” Markides said.

 

Read more:

https://in-cyprus.com/finance-minister-drops-corporate-tax-hike-proposal/

Top Stories

Article that found risks in hydroxychloroquine against COVID-19 retracted

  An influential medical journal article that found hydroxychloroquine increased the risk of death in COVID-19 patients was retracted on Thursday, adding to controversy around...

Latest on the worldwide spread of the coronavirus

Latest update: 05/06/2020 08:16 The U.S. government is working with drugmakers to maximize availability of influenza vaccines, worried that a substantial flu season on top...

CBC measures gave economy time to tackle crisis, Governor says

  The measures implemented by the Central Bank of Cyprus (CBC), a nine-month loan repayment moratorium and a €1.4 billion capital release issued to the...

Transport Μinister calls for restoration of air connectivity

  Cyprus, as an island, depends on air transport both for connectivity with the outside world and its economic development  and for this reason, efforts...

15 year old caught behind wheel, in possession of laughing gas

  A 15 year old was caught behind the wheel near Xylophagou yesterday evening and in his car police found laughing gas and offensive weapons,...

Taste

Poulles (Υoung kolokassi)

Either you thrash the coriander seeds in a mortar, without making them into dust, or you gradually crush them in a blender. Remove the edges...

Pork cooked in wine

Crush the coriander seeds in a pestle and mortar or pulse-blend in a blender, taking care not to over-grind. Put the meat in bowl (not...

Lefkaritikos tavas – O ‘protinos’

Wash and dry the meat and rice separately. In a ‘tava’ (oven proof deep clay pot) first put a layer of five-six pieces of meat...

Local cuisine: An introduction

Rich in fresh ingredients and tasty herbs, offers the very best of Mediterranean culinary delights. Head out to a tavern and feast on a...