Authorities proposed tax incentives: up to 10% discount for advance payments

The TRNC government has submitted a package of five bills to parliament aimed at reforming the tax system and regulating labor relations. This was announced by Prime Minister Ünal Üstel.

The initiative covers income tax, corporate taxation, VAT, tax procedures, and employment issues. The main measure will be the expansion of the incentive system for conscientious taxpayers.

According to the proposals, the current 5% discount for those who pay taxes regularly and on time is maintained. Additionally, another 5% is introduced for citizens and companies that pay their 2025 tax in advance within the specified period. Thus, the maximum discount can reach 10%.

The government believes that such measures will accelerate the flow of revenue into the budget and increase the stability of public service funding. Üstel emphasized that the system will stimulate discipline while remaining fair and flexible.

Special attention is paid to taxpayers who have incurred arrears. Conditions are provided for them to return to the system — in particular, maintaining the right to discounts if new requirements are met. The minimum period of regular payments to receive benefits is also reduced from 36 to 34 months.

In addition, the bills provide for the update of several fees and payments that have not been reviewed for a long time. According to the Prime Minister, the changes are aimed at creating a more transparent and sustainable financial system.

Authorities emphasize that the reform is designed to strengthen public finances, increase tax collection, and ensure a balance between the interests of the state and business.