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Ministry of Finance: Since 2014, Cyprus has been on the list of states with preferential tax status

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“Commercial and economic relations between the two States are not affected”

ΥΠΟΙΚ: Απ 2014 στον κατλογο &kappa ;ρατoν με προνομιακo φορολογικ καθεστoς η Κyπρος

An announcement clarifying the Updated List of States with preferential tax status of the Independent Public Revenue Authority of the Hellenic Republic (AADE) which saw the light of day yesterday and which includes Cyprus, has been issued by the Ministry of Finance.

As mentioned, the Independent Public Revenue Authority of the Hellenic Republic published on December 27, 2023 the updated list of States with preferential tax status. The Republic of Cyprus is also included in the list under reference, along with 41 other jurisdictions.

The Republic of Cyprus is included in the list under reference since March 7, 2014 as long as the conditions for its inclusion are met, pursuant to the provisions of paragraph 6( b) Article 65 of Law 4172/2013 of the Hellenic Republic.

According to the Law in question, the list includes States whose tax rate on profits or income or capital is equal to or less than sixty percent (60%) of the tax rate of legal persons and legal entities, according to the Greek tax legislation. Therefore, since the corporate tax rate in Cyprus (12.5%) is less than 60% of the corresponding corporate rate of the Greek Authorities (22%), Cyprus has been included in the mentioned list since 2014.

It is noted that, along with the Republic of Cyprus, the Greek list also includes other European States such as Ireland, Hungary and Bulgaria, even though none of the States under reference are included in the European List of non-cooperative jurisdictions since the inclusion criteria are not based on corporate tax rate but on criteria related to tax transparency, the exchange of information and fair taxation.
Finally, it is noted that the inclusion of Cyprus does not affect the commercial and economic relations between the two States, nor the business activities between Cypriot and Greek companies.

Source: www.kathimerini.com.cy

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