articles | 11 October 2021

Cyprus welcomes OECD tax deal on global minimum tax rate

Cyprus welcomes the agreement reached by the G20 on 8 October 2021, marking the long-term efforts to create fair and healthy competition at global level and to safeguard the tax bases and public revenues of the economies.

In a press release the Finance Ministry says that 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,” it adds.

Cyprus Ministry of Finance, it notes, “is nevertheless in line with the principles governing the two-pillar plan, as set out in yesterday`s statement issued by the OECD, which will be finalised at the G20 meeting on 13 October 2021.”

FinMin also notes that Cyprus authorities are expecting 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% in large multinational groups, the Cyprus authorities stress the importance of maintaining the national fiscal and tax policy, including social and income policy as a national competency, in order to ensure compatibility with EU law and achieve equal and fair treatment,” the Ministry says.

Source: In-Cyprus

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