Nicosia cuts companies’ taxes further
Cyprus’ Cabinet approved several important measures on Wednesday, including a bill on tax rebates for businesses for energy upgrades, an extension of the tax payment deadline and a suspension of the obligation to file tax returns for individuals with a taxable income below 19,500 euros.
According to Finance Minister Makis Keravnos, the Council of Ministers approved a proposal by the Ministry of Finance regarding a bill aimed at diversifying the income tax and promoting green initiatives.
The bill allows for tax deductions on capital expenditures related to energy upgrades and savings by businesses, reducing operating costs while fostering a green economy, which is a key government objective.
Under the new bill, there will be an increased capital rebate of 7% for improving the energy efficiency of buildings, compared to the previous 3% rate.
Investments in machinery and equipment linked to renewable energy systems, as well as technical systems to enhance energy efficiency, will receive an increased capital rebate of 20%. Moreover, new electric commercial vehicles, taxis and buses will enjoy an increased capital rebate of 25%.
