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Cyprus Tax Reform: Balancing Competitiveness With Fiscal Integrity

by THEFUTURE.TEAM

September 10, 2025

Government Initiative Under Scrutiny

The forthcoming tax reform in Cyprus has ignited vigorous debate among key economic stakeholders. As the public consultation period concludes, both the Cyprus Chamber of Commerce and Industry (Keve) and the Institute of Certified Public Accountants of Cyprus (Selk) have articulated their perspectives, underscoring the need for an equilibrium between robust fiscal policies and maintaining the island’s competitive allure for international investors.

Keve’s Support Coupled With Strategic Caution

In a comprehensive six-page memorandum, Keve lauded the government’s commitment to combating tax evasion and enhancing collection mechanisms—a decisive step towards greater market transparency and fairness. However, the chamber also warned that any missteps in altering Cyprus’s long-standing, competitive tax regime could erode one of its foremost advantages in attracting foreign capital.

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Keve emphasized that a balanced approach is imperative to support local industries ranging from manufacturing to services, while concurrently bolstering Cyprus’ status as an attractive investment destination. The memorandum highlighted several reform proposals, including the elimination of deemed dividend distribution for exclusively Cypriot companies and a significant reduction in the special defence contribution from 17% to 5%, measures that had long been championed by the business community. Furthermore, Keve noted that despite a nominal corporate tax rate increase to 15%, the effective tax rate could decline substantially, ensuring a minimum of 15% and a maximum of 19.25%, compared to today’s rates of 23% and 27.4%, respectively.

Selk’s Call For Comprehensive Overhaul

In contrast, Selk adopted a more critical tone in its submission, disputing nearly all aspects of the draft legislation. The institute’s president, Odysseas Christodoulou, underscored the necessity of constant enhancement in both the quality and efficiency of business services to preserve Cyprus’ reputation as a premium business destination. In his correspondence with Finance Minister Makis Keravnos, Christodoulou argued that any effective tax system must rest on the three pillars of competitiveness, fiscal sustainability, and the protection of social welfare.

Looking Ahead: Constructive Dialogue And Future Engagement

As both Keve and Selk present their divergent views, the road ahead appears to be one of constructive dialogue. With Selk’s leadership scheduled for an extensive meeting with the Tax Commissioner on September 10, 2025, further exchanges are anticipated to refine the reform package. This ongoing debate not only reflects the complexities inherent in fiscal reformation but also underscores the delicate balance required between fostering economic growth and maintaining fiscal discipline.

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.

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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.