Cyprus Draft Budgetary Plan for 2019 with Limited Tax Measures

The Cyprus Ministry of Finance has published the draft Budgetary Plan for 2019. Proposed tax-related measures of the plan are quite limited and include:

• A reduction in the special contribution for defence rate on interest income from 30% to 17%; and
• The reform of the vehicle taxation framework including a change in the calculation of road tax for newly registered cars and the abolition of vehicle excise tax.

Subject to approval, the measures are to apply from 1 January 2019.