Baker Tilly Cyprus: “Hands off the corporate tax”

The overall positive assessment on the current attractiveness of Cyprus as a business centre is driven mainly by the low tax rate which tops the list of island’s main advantages, according to a new survey commissioned by Baker Tilly Cyprus.
The survey, "Prospects of Cyprus as a business centre", found that 74% of international companies based here believe that the low corporate tax rate of 10% is the main advantage Cyprus has to attract foreign companies and investments. This is supported by the spontaneous responses to an open question as to what they consider as the main competitive advantage of Cyprus.
The survey also found that the overall number of references to the tax system was 85%, while the second advantage, but far from the first one, was the strategic position of Cyprus with corresponding percentages 9% and 27%.
"Research has shown how important foreign investors believe our tax rate is and how it helps them in taking the final decision to set up companies in Cyprus, either with presence in Cyprus or through representatives," said Marios Klitou, CEO of Baker Tilly Cyprus.
"The dependence of Cyprus on the provision of services to foreign investors is huge," Klitou said, adding that "our corporate tax rate of 10% must be protected at all cost. The Cypriot authorities and the entire political and business world should stand united and firm in this universal demand.
“Any negotiations with the Troika delegation (EU, ECB and IMF) should focus on other measures to improve the economy. If we increase the rate of corporate tax, the impact on the economy and the future of the whole of Cyprus will be tragic and irreversible," Klitou concluded.
This quantitative research was conducted by telephone during June 2012 by Noverna Consultants and Research with a total of 126 interviews using a structured questionnaire. The survey covered mainly international companies / organizations that have a presence in Cyprus as well as commercial attaches in Cyprus and other international organizations providing professional services such as lawyers, auditors and corporate support service providers.