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ARTICLE · 13 FEBRUARY 2017

Cyprus: Taxation Landscape 2016

Elias Neocleous & Co LLC
Elias Neocleous & Co LLC
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Elias Neocleous & Co LLC

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Compared with the previous year, which saw the introduction of significant new incentives, including exemption of investment income of non-domiciled individuals...

CyprusTax
Elias Neocleous & Co LLC
Elias Neocleous & Co LLC
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Compared with the previous year, which saw the introduction of significant new incentives, including exemption of investment income of non-domiciled individuals and a notional interest deduction on new equity capital, 2016 has seen fewer changes to the Cyprus tax system. Nevertheless, tax professionals in Cyprus have several new developments to keep themselves busy into the new year, including a reformed intellectual property box regime, new incentives for investment into small- and medium-sized enterprises, and new double taxation agreements.

I.Reform of the Intellectual Property Box Regime

In January 2016, the Ministry of Finance announced that the Cyprus intellectual property (''IP'') box regime would be amended to bring it into line with the ''modified nexus'' approach, which allows taxpayers to benefit from an intellectual property taxation regime only to the extent that they can show material relevant activity, including a clear connection between the rights

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