Cyprus is ready to adopt the new package of anticrisis measures

24.11.2011 Cyprus is drafting new measures aimed to overcome the negative consequences of the crisis. Officials of the country declare that these changes will not affect companies that do not lead activities in the state. Changes in the tax area will include the following: cessation of growth of wages in the public sector, increasing the tax burden for individuals with high income, additional payments for companies leading activity in Cyprus.
It is planned to have the following figure proportion: individuals with a monthly income of 3,500 euro will be subject to mandatory payment of 0.5%, individuals with monthly income up to 5,000 euro - 1%, and those individuals whose income exceeds  5,000 euro per month will be taxed at a rate of 1.5%.
As for companies taking activity in Cyprus, they will be obliged to pay the fee of 0.5% of its annual turnover for two years from 2012.

Expert’s opinion

“The next measures taken by Cyprus at the state level are taking place. In our view although the changes have to cover the tax sphere, increase the tax rates for individuals in particular, the program changes are not sufficient for significant budget replenishment of the country. It is obvious that more radical solutions in the situation in Cyprus are necessary”.

On the basis: www.europa.eu

Vorontsova Maria ( the lawyer of international consulting department of Honest&Bright)