Nicosia’s 15% tax on large firms

The Cypriot Ministry of Finance announced last Friday it will introduce a 15% minimum corporate tax rate on multinational and domestic groups or companies with a combined annual turnover of at least 750 million euros, while also examining ways to mitigate any possible adverse impact on the Cypriot economy.

The ministry said in a press release that following a unanimous agreement on the European directive over the global minimum tax rate, it will prepare the necessary bills transposing the European Union directive into national law.

In parallel, the ministry added that it “will examine ways to mitigate any possible adverse impact on the Cypriot economy.”

EU member-states have reached an agreement to implement at the EU level the minimum taxation component, known as Pillar 2, of the Organization for Economic Cooperation and Development’s reform of international taxation, aiming to impose a minimum rate of 15% on profits of large multinational and domestic groups or companies with a combined annual turnover of at least €750 million.

Member-states must transpose the EU directive into national law by December 2023.