The Economic Research Center of the University of Cyprus presented a series of recommendations for possible tax reform that includes the following proposals:
- Strengthening the tax residency criteria for companies based on control and management
- Implementation of a framework for intangible assets (IP Box)
- Repeal of the deemed dividend distribution regime and implementation of a聽5% withholding tax聽on actual dividend distributions for Cyprus tax residents who are also domiciled in Cyprus
- Increase in the corporate tax rate from聽12.5% to 15%
- Measures against "closely held companies"
- Super deductions for expenses/depreciation, accelerated depreciation, and deductions for skill upgrades and employee retraining for green transition and digital transformation
韦he recommendations are subject to further consultations with stakeholders, and any changes will only be implemented after the approval of the relevant bills by Parliament.
Read a聽March 2025 report聽prepared by the 乐鱼（Leyu）体育官网 member firm in Cyprus