Business Reforms in Cyprus
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Paying Taxes: Cyprus made paying taxes more difficult by increasing the frequency and number of VAT audits, including in cases of VAT cash refund requests. At the same time, Paying Taxes was made less costly following the introduction of notional interest tax deductible expenses and an increase in the discount rate on immovable property.
Starting a Business: Cyprus made starting a business easier by merging the procedures to register for taxes and for VAT while making name search and reservation faster.
Getting Credit: Cyprus made access to credit information more difficult by stopping the distribution of historical credit data.
Paying Taxes: Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax.
Labor Market Regulation: Cyprus amended its legislation to allow shops and supermarkets to operate seven days a week
Getting Electricity: The utility in Cyprus made getting electricity easier by reducing the time required for obtaining a new connection.
Getting Credit: Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit information and to report credit histories for both borrowers and guarantors.
Paying Taxes: Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax.
Enforcing Contracts: Cyprus made enforcing contracts easier by introducing a fast-track simplified procedure for claims worth less than €3,000.
Resolving Insolvency: Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings.
Getting Credit: Cyprus improved its credit information system by adopting a central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases.
Paying Taxes: Cyprus made paying taxes easier for companies by reducing the number of provisional tax installments for corporate income tax.
Registering Property: Cyprus made property transfers faster by computerizing its land registry.
Paying Taxes: Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax.
Protecting Minority Investors: Cyprus strengthened investor protections by requiring greater corporate disclosure to the board of directors, to the public and in the annual report.
Getting Credit: Cyprus improved access to credit information by establishing its first private credit bureau.