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articles | 19 December 2016 | ServPRO Accountants & Consultants

Tax Reform in the Cypriot Investment Fund Sector

The government of the Republic of Cyprus is about to introduce a new legislation which “will introduce an improved and more credible, effective and competitive framework in collective investments,” said Minister of Finance Mr. Harris Georgiades during his speech at the Cyprus Investment Funds Agency (CIFA) annual general meeting.

The government of the Republic of Cyprus is about to introduce a new legislation which “will introduce an improved and more credible, effective and competitive framework in collective investments,” said Minister of Finance Mr. Harris Georgiades during his speech at the Cyprus Investment Funds Agency (CIFA) annual general meeting. 

“The Finance Ministry is preparing and in the coming months we will promote a reform in the tax regime which would accompany and strengthen even further the development of the sector,” the Minister said, also noting that, “this framework will render Cyprus as one of the most attractive and competitive jurisdictions for investment fund growth, offering the right balance between effectiveness and investor protection.”

Under-secretary to the President, Mr. Constantinos Petrides assured that the government will continue to bring to the table reform proposals, adding that they will “continue to present proposals because this country has prospects if we set free the healthy forces of the private sector, the healthy forces of entrepreneurship,” highlighting the island’s capabilities “if we were not trapped in some attitudes, inefficiencies and distortions.”

Mr. Petrides spoke about the government’s interest in entrepreneurship and the fact that its preparing a bill in university spinoffs, linking entrepreneurship with university research, as well as a legal framework for venture capital, finally adding that the Council of Ministers will soon discuss a proposal for visa-startups.

President of CIFA, Mr. Angelos Gregoriades, said that as of tomorrow, the association will become an International Capital Market Association (ICMA) associate member, noting that Cyprus will host the 2018 AGM of the European Fund Managers Association. He also expressed his eagerness to finalise their proposals on the legal and tax framework in 2017, which will include the introduction of the Registered Alternative Investment Funds (AIF). “The introduction of the registered AIF could be a key stage in the development of Cyprus as an alternative funds jurisdiction within Europe as we seek to increase the number of alternative investment funds in Cyprus,” he said.

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