06/11/2001 11:03
The Cabinet yesterday approved the government’s tax reform proposals, which are expected to be discussed by the House during its meeting on the 12 November.
The tax reforms are directed so that there is alignment with EU directives and as supported by the Finance Minister Takis Klerides, the proposals will create an effective tax system which will have positive effects on all citizens. The government proposes implementation of the new system in two phases.
In particular, the proposal contains changes to tax scales, reduction of tax rates as well as abolishment of reliefs and deductions with the exception of deductions and contributions to the Social Security Fund, Provident Funds as well as deductions which concern life insurance contributions.
Non-legal entities with income up to CYP 9.000 per annum will not be liable for taxation, those with income between CYP 9.001 to CYP 12.000 will be taxed at a rate of 20%, from CYP 12.001 to CYP 15.000 25% and over CYP 15.000 28%.
The tax reforms are directed so that there is alignment with EU directives and as supported by the Finance Minister Takis Klerides, the proposals will create an effective tax system which will have positive effects on all citizens. The government proposes implementation of the new system in two phases.
In particular, the proposal contains changes to tax scales, reduction of tax rates as well as abolishment of reliefs and deductions with the exception of deductions and contributions to the Social Security Fund, Provident Funds as well as deductions which concern life insurance contributions.
Non-legal entities with income up to CYP 9.000 per annum will not be liable for taxation, those with income between CYP 9.001 to CYP 12.000 will be taxed at a rate of 20%, from CYP 12.001 to CYP 15.000 25% and over CYP 15.000 28%.
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