The Cyprus IP Box Regime
In Collaboration with
Chrysostomides Law Firm
Chrysostomides is a leading independent Cyprus law firm. Taking clients business personally, they strive for excellence in reaching quality, tailored legal solutions and building strong, long-lasting relationships. They combine a deep, multi-faceted knowledge of the law with a strong sense of professionalism in delivering results through effective team work.
IP BOX REGIME
IP Box Regime is a corporate tax regime, used by several countries to incentivize research and development activities which conclude in lower taxes, by taxing revenues deriving from a license, sublicense, sale or transfer of qualified IP assets, way differently compared to other commercial revenues.
FEATURES OF IP BOX REGIME IN CYPRUS
- 80% deduction of profits on disposal of IP rights
80% of any profit resulting from the disposal of relevant intangible assets is disregarded for tax purposes. This is a generous exemption compared to other regimes as shown at the table below.
- up to 20 year tax amortisation period
All intangible assets (excluding goodwill), are eligible for tax amortisation (capital allowances) over their useful economic life with a maximum of 20 years.