News Local Anastasiades announces modernisation of the tax system

Anastasiades announces modernisation of the tax system

President of the Republic Nicos Anastasiades announced on Wednesday evening a series of measures that aim to modernise the island`s taxation framework, making it more competitive and fair.
Speaking at the 54th annual General Assembly of the Institute of Certified Public Accountants of Cyprus, in Nicosia, the President said that his government aims to become the first government in the history of the island that will have succeeded not only in reducing public debt, but also in reducing taxes that have been imposed on citizens in the past.
He said that today, the Cabinet has taken a series of decisions that modernize the taxation framework making it more fair and more competitive, while limiting taxation burden and offering incentives for economic activity.
The measures include the extension until the end of 2016 of the increased capital allowance for machinery, installations and buildings, the introduction of the `non – domicile` term, the reduction of transfer tax for all real estate sales by 50% until 31/12/2016, the abolition of municipal and community taxes on all properties and the introduction of a single property tax on the basis of a sole low tax rate.
The President also said that Cyprus will remain an attractive destination for foreign investors with many advantages, like its high level of professional services.
Referring to the economic situation in Cyprus, he stressed that the country has made important steps forward compared to two years ago and said that “we have restored the credibility of our country and our banking system and our economy is now recovering”.
He pointed out that the assessments of Cyprus` international lenders are positive while rate agencies constantly upgrade Cyprus` economy.
But the President said that there are still a series of problems that the country has to overcome, like unemployment and pledged to do his utmost to address them.
Soure: CNA