The New Cyprus IP Box Regime

A. INTRODUCTION

The House of Representatives has voted amendments to the IP Box Regime in order to comply with the guidelines and requirements of the OECD.The new amendments bring the legislation in Cyprus on the taxation of Royalties (IP Box) in full compliance with OECD.This will ensure stability in the methodology of calculating taxes on royalties and will therefore enable investors to plan accurately for the future.

It is also important to state that the new law, under some conditions, gives the opportunity for those that were benefiting from the old IP box regime to continue to benefit as until the end of June 2021.

The amendments to the IP Box Regime are effective as from 30th of June 2016.