HLB Afxentiou Ltd

Tax News- First package of measures Tax update - September 2011

On 26 August 2011 the House of Representatives voted as a first package of austerity measures a number of amendments to tax legislation for the purpose of raising revenues and decreasing government spending and for the objective of avoiding entry into the support mechanism.

These changes relate to increasing various taxes, introducing a levy for all companies incorporated in Cyprus, as well as introducing/increasing contributions to pension schemes of employees of the government, local authorities and semi-governmental organisations, and introducing a special levy for two years on the salaries and pensions paid to employees of the government, local authorities and semi-governmental organisations.