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Cyprus Ranks Near The Top In EU Support For Fighting Tax Evasion

by THEFUTURE.TEAM

July 13, 2026

Cypriots are among the European Union’s strongest supporters of tougher action against tax evasion and avoidance, with 64% saying it should be the bloc’s top tax priority.

According to the European Commission’s annual report published last week, Cyprus ranked second only to France, where 65% of respondents prioritised tackling tax evasion. Portugal followed at 61%, while Finland recorded 60%.

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Tax Evasion Tops EU Priorities

Across the EU, 54% of respondents said combating tax avoidance and evasion should be the Union’s main tax policy objective.

Preventing double taxation between member states ranked second at 26%, followed by resolving cross-border tax disputes (23%), supporting the green transition through taxation (19%) and further digitalising tax and customs procedures (16%).

Estonia was the only member state where preventing double taxation ranked ahead of tackling tax evasion.

Billions Lost To Tax Gaps

The survey comes as the European Commission estimates the EU’s VAT compliance gap reached €128 billion in 2023, representing the difference between expected VAT revenues and the amount actually collected.

The Commission also estimated that the average corporate income tax compliance gap across 23 member states amounted to 10.9% of corporate tax revenues.

It said stronger data collection, digital reporting, artificial intelligence and closer cooperation between national tax authorities could help reduce those losses.

Cyprus’ Tax Profile

EU governments collected €7.1 trillion in tax revenues in 2024, with the overall tax-to-GDP ratio rising to 39.4%. Cyprus recorded a lower ratio of 36.3%, up slightly from 36.2% in 2023.

Corporate taxation continues to play a significant role in Cyprus, accounting for 19% of total tax revenue in 2024, the third-highest share in the EU after Ireland and Malta.

The report also noted Cyprus’ decision to increase its corporate tax rate from 12.5% to 15% in line with the global minimum tax framework. It highlighted additional measures aimed at tackling aggressive tax planning, including a 17% withholding tax on certain payments to companies in jurisdictions listed by the EU as non-cooperative and a new corporate residency test based on incorporation.

Filing Tax Returns

Across the EU, 52% of respondents described filing their tax returns as easy, while 22% found the process difficult.

In Cyprus, 51% said filing was easy, although 12% relied on an accountant or other tax professional. More than 15% of respondents in Cyprus, Germany and Ireland also described the support provided by their tax authorities as “very inadequate”.

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Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

August 17, 2026

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

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IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.