Breaking news

Cyprus Tax Reform Reshapes Corporate Landscape With New Incentives

by THEFUTURE.TEAM

February 25, 2026

Overview Of The Reform

Cyprus introduced a broad tax reform effective January 1, 2026, following parliamentary approval in December. The package includes changes to corporate taxation, dividend taxation, tax brackets, and incentive schemes. The impact is already visible in January payrolls, reflecting revised allowances, updated tax bands, and an increased tax-free threshold of €22,000.

Balancing Adjustments Through A Formula Approach

The reform combines higher corporate taxation with reductions in shareholder taxation. The corporate tax rate increased from 12.5% to 15%, while tax on dividends was reduced from 17% to 5%. Additional measures include the abolition of imputed dividend distribution and stamp duty fees, alongside expanded deductions for charitable donations and sponsorships. The framework is designed to maintain Cyprus’ attractiveness for investment while aligning with evolving international tax standards.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Broad Reforms And The Need For Adaptation

The changes extend across multiple areas of the tax system, prompting training seminars and guidance for businesses and professionals. New provisions introduce special rates for stock options and digital asset transactions, reflecting adjustments to modern business models. Authorities position the reform as a step aimed at improving competitiveness between domestic and foreign companies while strengthening tax collection efficiency.

Industry Reactions And Strategic Implications

Business organizations have generally responded positively, highlighting the combination of higher corporate tax with dividend relief and targeted incentives. Industry representatives note that clearer compliance rules and stronger enforcement mechanisms may help reduce tax evasion and create a more predictable operating environment for companies.

Detailed Legislative Changes

Key provisions include:

Reduction of tax on actual dividends from 17% to 5%
Abolition of imputed dividend distributions and stamp duty fees
Introduction of an 8% tax rate on stock option gains up to €1 million over ten years
8% taxation on net gains from cryptocurrency transactions
Enhanced deductions for R&D, green investments, and agricultural production
Extension of loss carryforward period from five to seven years

Additional amendments introduce stricter documentation requirements, expanded employer obligations, and updated compliance rules for financial institutions.

Looking Ahead

Government officials argue that the overall package offsets the corporate tax increase and supports business competitiveness. Authorities estimate that more than 30,000 small Cypriot enterprises will benefit from incentives, including reductions or abolitions of defense tax obligations. The reform aims to strengthen Cyprus’ position as a competitive business jurisdiction while improving fiscal sustainability.

Conclusion

The Cyprus tax reform represents a decisive move towards modernizing its fiscal framework. By balancing increased tax rates with substantial incentives and reducing administrative burdens, the government aims to create a more equitable and competitive business environment. Continuous dialogue between the public and private sectors will be essential to refine these policies and adapt to any emerging challenges in the rapidly evolving global market.

The Future Forbes Realty Global Properties

by News Editor

August 24, 2026

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.