Tax revenue rises by 8.7%

The Cyprus Inland Revenue Department reported that tax revenue rose by 8.7% year on year in the first ten months, to CYP 504.9 mln, compared with CYP 464.6 mln in the same period of 2004.

The Department reported that the increase was the result of income from corporate tax (up 13.5%) and the “special contribution for defence” (up 18.9%), helped by the international business sector and an improvement in the overall business climate.

Revenue from the self-employed continued to show a year-on-year decline, of 14.4% in the first ten months.

Parliament approved a bill designed to improve tax collection from the self-employed, although the threshold for reporting requirements was set very high.