ECONOMY

Cyprus says G7 tax stance may not directly affect it

cyprus-says-g7-tax-stance-may-not-directly-affect-it

A decision by the Group of Seven to impose a global minimum tax rate does not seem to directly affect Cyprus, its Finance Minister Constantinos Petrides said on Monday.

In a written comment to Reuters, Petrides said Cyprus would safeguard its interests and that those of smaller European Union member-states needed to be acknowledged and taken into consideration.

The G7 has proposed a global minimum tax rate of 15%. Cyprus’ tax rate is 12.5%, but Petrides said its effective taxation was higher than 15%.

“The G7 decision is indeed a breakthrough, which however does not seem to directly affect Cyprus,” Petrides said, adding that the island was “not a tax haven.”

“Cyprus is an open economy and a competitive destination, based on its own merits, and will exhibit a constructive spirit at the discussions at EU level,” he said.

“At the same time [it] will safeguard its interests and the sustainability of the economy. The small EU member-states’ interests should be acknowledged and taken into consideration.”

Petrides had told European lawmakers last week that the island believed taxation was a matter of national competence.

[AP]