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Cyprus Committed To Adequate Wages And Dignified Pensions, Minister Says

Minister of Labour and Social Insurance Yiannis Panayiotou has conveyed the government’s commitment to adequate wages and dignified pensions promoting more social justice in citizens’ everyday life.

According to a press release issued by the Ministry of Labour, Panayiotou made the statements while addressing the Plenary of the ILO’s Global Coalition for Social Justice held in Geneva, on 13 June.

The Global Alliance was set up during the 2023 ILO Conference, aiming to promote social justice in the shaping of public policy and social dialogue between social partners, numbering more than 250 participants including governments, workers and employers’ organisations and other international organisations.

Cyprus was one of the first states to respond to the invitation by ILO Director-General, the Ministry said.

In his address, Panayiotou said universal and lasting peace can only be consolidated if it is based on social justice.

“This is what we are defending in this body for over a century and our commitment will continue to be in place for the years and generations to come,” he added.

Panayiotou stressed that the Cypriot government remains “dedicated to safeguarding better wages and better pensions, adequate income for all those actively participating in the labour market so we could maximize the economy’s capacity and to secure our citizens’ welfare.”

“Our government is determined to actively participate in the Global Alliance because we believe in its cause and we want our Alliance to succeed,” he said.

Cyprus Tax Authorities Target Undeclared Digital Earnings

Cyprus is intensifying its scrutiny on undeclared income from digital channels, as a new audit reveals widespread non-compliance among roughly 300 individuals and entities—including several foreign residents. The investigation, spearheaded by advanced social media monitoring, highlights income omissions from platforms like OnlyFans, which surged in prominence during the pandemic as creators monetized their content through paid subscriptions.

Advanced Monitoring Uncovers Significant Gaps

The Cyprus Tax Department’s sophisticated analytical tools uncovered numerous cases where both local and foreign earners failed to report revenue. Instances of income reaching up to €500,000 have been detected, underscoring a critical gap in fiscal reporting as digital transactions continue to grow.

Diverse Professional Sectors Under Scrutiny

The audit did not solely target digital creators; it also extended to diverse sectors including beauticians, taxi drivers, hairdressers, travel agents, and small business owners. Notably, over 50 taxi operators were found to have undeclared income surpassing €100,000—often processed via electronic payments—highlighting a broader trend of non-compliance across various service-driven industries.

EU Directives and Enhanced Transparency Measures

The enforcement framework has been bolstered by EU Directive 2011/16/EU (DAC7), which mandates that digital platforms, since July 2021, submit comprehensive user data—such as identities, tax residences, and annual incomes—directly to national tax authorities. This system, supplemented by the One Stop Shop (OSS) VAT mechanism, is instrumental in closing regulatory loopholes and ensuring cross-border financial transparency.

Expanding Focus to a Broad Range of Digital Platforms

Beyond OnlyFans, authorities are extending their audits to include income generated from YouTube, Twitch, Instagram, and other online marketplaces. By correlating bank records with online activity and spending patterns, regulators are keenly focused on individuals whose lifestyles do not match their reported incomes, ensuring equitable tax compliance across traditional and digital domains.

Implications for the Evolving Online Economy

While OnlyFans is primarily recognized for adult content, its platform also serves a wide range of professionals including musicians, fitness trainers, and artists. This comprehensive local investigation into digital earnings underscores the principle that all income—whether digital or traditional—must be declared under Cypriot law. With formal notices set to be dispatched, and the threat of backdated taxation, fines, and even criminal proceedings looming over persistent offenders, the tax department aims to safeguard fiscal integrity in an increasingly digital economic landscape.

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