The President of Cyprus, Nikos Christodoulides, has proposed an increase in the tax-free income threshold, a matter that has been high on his agenda throughout the election period.

Specifically, as reported by Brief, the Center for Economic Research at the University of Cyprus, tasked with the project of tax transformation, has received and is processing the President's recommendation to raise the tax-free income from the current €19,500 to €24,500.

It should be noted that Cyprus's tax model has essentially remained unchanged since 2001.

Economist at the Center for Economic Research and member of the advisory committee, Giorgos Syrichas, confirming the information to Brief, added that several proposals from various entities have been submitted to the advisory committee, all of which are being processed as part of the tax reform study.

It is important to remember that so far, the Center has prepared a report on green taxation and compensatory measures and is in discussions with the Ministry of Finance for their implementation. Environmental fees are expected to be imposed in early 2024, while the first 6 of the 15 phases of tax reform are expected to be completed by March 2024, with the finalization of the legislation anticipated by the end of 2025.

Also noteworthy is the one-year suspension of the mandatory filing of tax returns for individuals whose taxable income does not exceed €19,500.

According to the Minister of Finance, Makis Keravnos, this decision was made to avoid an influx of tax returns during the period when the new tax system will be implemented.