Cyprus welcomes G20 tax agreement

Cyprus on Sunday welcomed the agreement reached by the G20 on October 8, marking the long-term efforts to create fair and healthy competition at global level and to safeguard the tax bases and public revenues of economies.

Cyprus is not in a position to take part in the global consultations that take place at this level since it is not a member of the OECD nor of the Inclusive Framework due to objections of a member country of the Organisation. Therefore Cyprus is not included in the list of member countries of the OECD-Inclusive Framework.

The ministry of finance however, said it is in line with the principles governing the two-pillar plan, as set out in Saturday’s statement issued by the OECD, which will be finalised at the G20 meeting on Wednesday.

Cyprus authorities are excepting the final outcome of the discussions that will take place at the G20 meeting, which will form the basis for the development of the corresponding European legislative initiatives in 2022.

In particular, in relation to the decision to establish a minimum effective global corporate tax rate of 15 per cent in large multinational groups, the Cyprus authorities stressed the importance of maintaining the national fiscal and tax policy, including social and income policy as a national competency, to ensure compatibility with EU law and achieve equal and fair treatment.