CYPRUS | Parliament hikes corporate tax rate

MPs hiked Cyprus’s ultra-low corporate tax rate on Thursday as part of a package of measures to secure a controversial 10 billion euro rescue package that must still be ratified by parliament

Cyprus parliamentvoted to raise the corporate tax rate from the current 10 percent, one of the lowest in Europe, to 12.5 percent in a move expected to raise 600 million euros ($786 million).

Parliament also approved increasing the defence levy on profits from interest on deposits from 15 percent to 30 percent and raised from 0.11 percent to 0.15 percent the levy on credit institutions’ transactions.

A vote on additional public sector pay cuts of up to 2 percent will come next week. Following a ruling by the attorney general, parliament still has to vote on the bailout package as a whole.

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