EY Cyprus has, once again, sponsored and participated in the 6th Cyprus International Tax Conference, titled “The evolving landscape: Adopting to new challenges and opportunities,” which took place on Tuesday, February 14th at the Hilton Nicosia hotel.
Considered one of the most important gatherings for tax professionals in Cyprus, the conference addressed critical tax developments, in view of the new tax initiatives adopted by the European Commission and the OECD. Topics discussed included Transfer Pricing developments in Cyprus and worldwide, VAT on Financial Services and Fintech, Tax Justice in Cyprus, Corporate Tax Governance, the future of Income Taxation in Europe and the application of DAC 7 on digital platforms. The conference was attended by CFOs from large corporations from all sectors of the economy, as well as professionals from accounting, audit and tax firms, banks and other financial institutions, law firms, investment firms as well as representatives from relevant government authorities in Cyprus.
EY was represented at the event by Petros Krasaris, Partner, EY Cyprus, who spoke on Business in Europe: Framework for Income Taxation (BEFIT). The speaker outlined the new EU proposal, which will replace the pending proposal of a Common Consolidated Corporate Tax Base (CCCTB), and will provide a comprehensive solution for business taxation in the EU. This initiative aims to introduce a single corporate tax rulebook within the EU, based on a common tax base and formulary apportionment of profits to Member States resulting to a more effective and fair allocation of profits between EU countries.
Speaking on the occasion of the conference, Petros Krasaris said: “At a time when the international tax landscape is undergoing drastic changes, Cyprus is aiming to align its tax legislation with EU and other international tax developments, increase transparency and deal with inefficiencies of the current tax system, while retaining its competitive position In so doing, we will strengthen our international credibility and help attract investment at a critical time for our economy. In relation to BEFIT, it is suggested that the Cyprus government undertakes its own impact assessment exercise to understand what BEFIT means for Cyprus and the impact this proposal may have on the country’s corporate tax revenues.”
George Liasis, now Chairperson of the VAT Committee of the Institute of Certified Public Accountants of Cyprus and a Partner at EY Cyprus, addressed the conference on the subject of VAT on Financial Services and Fintech and presented the current state of the VAT law on financial services and fintech, the proposed modernization of VAT and how it could be applied to these sectors. Mr Liasis noted: “It is time for reform. Current VAT rules for financial services are criticized for being complex and difficult to apply and have not kept pace with the development of new services in the sector. This is particularly evident in the application of the rules on Fintech. It’s time to take action even at local level as part of the proposed tax reform so as to enhance fairness and transparency.”