The Cyprus Employers and Industrialists Federation (OEB) General Director Michalis Antoniou has announced that the OEB has openly asked the government for six tax reliefs, that amount to €500 million annually combined.
Speaking at a working breakfast, General Director Antoniou explained to journalists how said proposed tax reliefs will help increase state revenue by €650 million in the next three years and add at least 9,000 new jobs within the same time period.
Proposals include – abolition of employers’ contribution to Social Cohesion Fund, reduction of percentage of the employers’ contributions to the Protection of Employees’ Rights Fund and the Redundant Employees Fund in the event of an employer’s insolvency, resetting the natural persons’ tax rate, Reduction of interest rate of deposits on national defense contribution from 30% to 15%, Abolition of €350 compulsory company fee to the Official Registrar, and finally, the abolition and/or reduction of deemed dividend distribution.
George Petrou, board chairman of the OEB said that the conditions now being mature enough for tax reliefs in return to payments to the island’s fledgling General Health Scheme (Gesy), businesses can now maintain their edge.