Selk conference outlines practical steps for major tax transition

In a strongly attended event focused on Cyprus’ sweeping tax overhaul, the Institute of Certified Public Accountants of Cyprus (Selk) gathered professionals and policymakers for its fifth tax conference, sending a clear message about cooperation, stability and reform implementation.

The conference was held in collaboration with the Tax Commissioner’s Office and centred on the tax reform following the adoption of the amending laws.

Moreover, the event aimed to provide a detailed and practical presentation of the changes introduced in the taxation of individuals and legal entities, while offering substantive support for the proper implementation of the new tax framework.

Opening the event, Selk president Odysseas Christodoulou stressed the importance of timely and responsible guidance to the professional community.

“The large participation confirms the importance of timely and substantive information regarding the changes brought about by the tax reform,” he said.

“Selk remains committed to supporting its members and all stakeholders through responsible and practical guidance,” he added.

He also underlined that the institute played a decisive role both in shaping and in interpreting the new provisions, contributing to ensuring workable and applicable solutions for the market.

Addressing the conference, Deputy Minister to the President Irene Piki described the reform as a landmark intervention for the country and outlined the government’s central objective.

“A tax system that is simple, transparent and effective, with clear and tangible benefits for the economy and citizens,” she said.

Deputy Minister to the President Irene Piki

She explained that the reform strengthens fairness and predictability through the introduction of a new tax-free threshold of €22,000, the simplification of tax bands, the abolition of deemed dividend distribution, the reduction of the special defence contribution to 5 per cent, and the abolition of stamp duty.

It was also mentioned that approximately 200,000 taxpayers have already seen a net increase in earnings with their January salary, while during 2026 an estimated 30,000 individuals are expected to be fully exempt from taxation.

Piki emphasised the close cooperation between the government, parliament, the Tax Department and Selk.

“The role of professionals is decisive, as they bridge legislative intent with everyday economic activity,” she said.

She also referred to the positive trajectory of the Cypriot economy, noting growth approaching 4 per cent for 2025, public debt below 60 per cent of GDP, surpluses above 3 per cent, and a recent upgrade of the country’s credit rating to A by Scope Ratings.

Elsewhere, Christiana Erotokritou, president of the House finance committee, stated that the reform was the product of substantive consultation and collective effort.

“When we all know and accept the changes together, we create a better and safer tomorrow for everyone,” she said.

She added that “seriousness and a methodic approach in the legislative process enhance the country’s credibility, particularly during periods of crisis and significant reform”.

Meanwhile, Tax Commissioner Soteris Markides identified strengthening tax compliance as a core priority of the department.

He referred to more effective procedures, greater use of technology and accelerated digitalisation of services as central pillars of this effort.

Special mention was made of the , aimed at reinforcing tax fairness, as well as to provisions designed to boost competitiveness and attract investment.

“The conference highlighted the importance of institutional cooperation, responsible communication and practical guidance for the successful implementation of a reform with immediate and substantial impact on citizens and businesses,” Selk said in a statement.

Finally, Selk reaffirmed its “ongoing commitment to supporting its members and the wider business community, contributing actively to the shaping of a modern, stable and credible tax environment for Cyprus”.