Will Cyprus set a new tax rate of 15%?
Most recently, 130 governments supported the largest changes in cross-border corporate taxation and a new tax rate of 15%.
Nine countries have already opposed the changes: Ireland, Estonia, Hungary, Peru, Barbados, Saint Vincent and the Grenadines, Sri Lanka, Nigeria and Kenya.
“I am convinced that in the end we will be able to get the European countries to agree on these rules together,” Scholz said. “From my point of view, they will be implemented in any case.” Scholz called the global corporate minimum tax a breakthrough and biggest reform in decades.
The minimum corporate tax does not require countries to set their rates at the minimum level; it gives countries the right to charge companies what they do not pay to the minimum rate.
The Cypriot finance minister is confident that the new global taxation order will not affect Cyprus in any way.
“Cyprus is not a tax haven, it is a competitive investment destination popular for its legal framework, investors, natural resources and skilled labor,” said Finance Minister Konstantinos Petridis. The Cyprus economy attracts global foreign investment due to its resilience, which has been proven after the 2013 financial crisis, he said.
Commenting on the proposals to harmonize corporate tax around the world at 15%, Petridis noted that this initiative provides a good opportunity for tax reform on the island. The tax system in Cyprus has not changed in the past 20 years, he added.
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