Tax Adjustment in Cyprus
New amendments to tax legislation
The end of the year 2015 was marked for the Republic of Cyprus by approval of the regular amendments to tax legislation that have been targeted at promotion of the country in terms of tax environment.
Thus, in December, 2015 the Ministry of Finance of Cyprus announced the press release describing amendments to the Intellectual Property Tax Regime that had been indorsed at the middle of December.
The changes include the recommendations of the fifth Act of the Organization for Economic Cooperation and Development (OECD) which were released on October 5, 2015 for the Action Plan on Base Erosion and Profit Shifting (BEPS) and conclusion which was accepted on December 8, 2015 by the Council of Ministers of Finance and Economic Affairs of Cyprus.
Tax recovery with „IP-box” rebate set
Since 2012, after the Government of Cyprus accepted the amendments to the local legislation that had determined certain rebate set for companies holding intellectual property, this regime has been approved as one of the most attractive among the EU countries. The rebate set has been titled «Intellectual Property box» («IP-box») and it has determined only 2.5% effective tax rate on revenues received from intellectual property.
New amendments to tax regime significantly harden stand on demand to exemption, however, Cyprus companies, that will cross over to the IP-box regime till July 1, 2016 (this is the deadline for transition period), will get an opportunity to apply the rebate set and economize on taxes till the middle of 2021.
The specialists of OLIESERVE are closely following all the updates and changes of the legal framework of Cyprus in order to present you the most interesting and relevant information.
Contact us and we will be happy to provide you with services involving professional tax planning, assistance in business relocation to Cyprus and registration of your company.
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