The provisions of the Cyprus Tax law for the treatment of intangible assets have been amended on 14/08/2020, retrospectively from 01/01/2020. The amendments as explained below they enhance the attractiveness of the regime by: abolishing any tax on the gain realized on the disposal of the intangible assets (even on the capital allowances claimed as tax deduction) and; provide flexibility to taxpayers on the claim […]
For many businesses, their IPs is the main profit driver. This is more prominent in the digital era and economy in nowadays. The IP is amongst the main reasons why some businesses differentiate from the competition or why some products/services are sold at a higher price. IP comes into different forms such as patents, licenses, software and other non-obvious legally protected IPs. Tax considerations are […]
Amendments in the Cyprus Notional Interest Deduction (NID) rules. On 16/06/2020 the amendments on the NID rules were published in the official gazette of the Republic of Cyprus. The major amendments are as follows: From 1 January 2020 the annual NID rate is the 10-year government bond of the country that the funds are invested in the business of a company plus 5% instead of […]
Cyprus Ratifies the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“MLI”). On 22/01/2020 it was published in the official gazette of the Republic of Cyprus the ratification instrument for MLI, including the MLI, the list of reservations and notifications of Cyprus (“MLI position”) at the time of signature. The effective date of application of MLI is the […]
