Cyprus places in top 10 for improved economic reforms

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According to a recent report by the World Bank’s Doing Business, Cyprus ranks 47th in the overall 2016 Ease of Doing Business.
Cyprus’ economy has implemented significant reforms last year, moving up 13 places to 47 in the overall 2016 Ease of Doing Business ranks out of 189 countries. This also boosted Cyprus’ Distance from Frontier overall percentage to 71.78% compared with 67.37% last year.

An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the poorest performance and 100 represents the frontier.

The reforms implemented by Cyprus were: enforcement of contracts, resolving insolvency, getting electricity, getting credit, and paying taxes.

According to DB 2016, Cyprus made enforcing contracts easier by introducing a fast-track simplified procedure for claims of a value lower than €3,000. It also made getting electricity easier by reducing the time needed for getting a new connection.

In addition to the above, Cyprus, improved access to credit information allowing credit bureaus to collect and report the records of both borrowers and guarantors. Cyprus has also made resolving insolvency easier by introducing a reorganisation procedure and provisions to facilitate the continuation of a debtor’s business during insolvency proceedings. The new regime also allows creditors greater participation in essential decisions during the proceedings.

Paying taxes has also become simpler for companies after Cyprus facilitated online payment of corporate income tax. Cyprus has simultaneously raised the contribution rate for social insurance paid by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased vehicle tax.