Cyprus promises are not empty

11.03.2012

Even in December, 2011, The Parliament of Cyprus  approved rate increase of VAT by 2%: from 15% till 17%. New rate came into operation since March, 1st, 2012.

This Increase doesn’t concern the goods and services which are subject to taxation under the lowered rates at a rate of 5 %, 8 % and 0 % of VAT according to VAT legislation.

Despite the increase of VAT rate for 2 %, the VAT rate in Cyprus  remains to one of the lowest rates in EU. The profit tax rate isn’t changed, it still makes 10 %. 

Expert’s opinion

«By this moment everybody understands that growth of VAT tax testifies the efforts of the government to fill up the state treasury and demonstrates struggle against an economic crisis. However, it is necessary to notice that these measures don't extend on the goods and services, on which VAT is established under the lowered rate (5 or 8 %).

Nevertheless, already now it is necessary to expect an "easy" rise in prices at company registration and it’s prolongation».

On the basis: http://www.moi.gov.cy

Lomakina Irina ( the director of Moscow office of Honest & Bright )