The Ministry of Finance is currently pushing a bill to provide tax relief for individuals.
The Ministry of Finance is promoting a bill to grant tax relief to natural persons for expenses incurred for business risk financing investment for Small and Medium Social Enterprises.
Based on an announcement by the Ministry of Finance, in the context of granting tax incentives to Social Enterprises, a Bill titled "Law Amending the Income Tax Laws of 2002 to 2023" is put up for public consultation, with the aim of amending the basic Law.
This amendment to the Income Tax Law aims to encourage natural persons to invest in Approved Small and Medium Social Enterprises by providing tax incentives, either directly or through an investment fund, or through an alternative trading platform.
As noted, the framework of the proposed bill stems from the 1st Axis of the Action Plan for the development of the Social Enterprise ecosystem in Cyprus "Creation of a Favorable Business Environment".
The framework was approved by the Council of Ministers on 9/1/2018 (Decision No. 84.130). From 12/23/2020, the Social Enterprises Law L. 207(I)/2020, which provides for the creation and maintenance of a register of Social Enterprises, is in force and the Regulations are in the process of being passed by the Parliament.
Green light from state aid commissioner
It is noted that the approval of the Office of the Superintendent of State Aids Control has already been obtained for this amendment and its comments have been included in the Bill.
According to the Social Enterprises Law of 2020, a social enterprise is an enterprise that is registered in the Register of Social Enterprises as a general purpose social enterprise or as an inclusive social enterprise. The Competent Authority for the purposes of the Social Enterprises Law of 2020 is the Service of Cooperative Societies.