The House of Representatives on the 14th of October 2016 has
voted amendments to the IP Box Regime in order to comply with the
approach adopted by the OECD.
The new IP Box Regime means that laws in Cyprus on the taxation
of Royalties are now in full compliance with the OECD
guidelines.
The new IP Box Regime provides a definition as to what
constitutes qualifying intangible assets, overall income and
qualifying expenditure and provides guidelines as to how to
maintain accounting records. Moreover, there is a new methodology
for calculating the profits that will be subject to a beneficial
tax treatment. Any profit that will not be subject to this
beneficial treatment will be taxed under normal tax rates.
