As on the 7th July 2022, the Cyprus House of Representatives passed amendments to the Income Tax Law, as follows:
- Increased deduction by 20% on the actual expenditure incurred on scientific research as well as research and development. According to the new provisions of the Law, an increased deduction of 20% will be granted on the actual expenditure for scientific research as well as research and development, as recognized on the basis of the international accounting standards, incurred by a person carrying on a business and who has the economic ownership of the intangible asset that results or may result from incurring such expenditure.
- The increased deduction will also be granted in thecases where the expenditure that will be incurred willbe of a capital nature and capital allowances will beclaimed on the said expenses.
- The increased deduction that will be granted based onthe provisions indicated above cannot be claimed inthe cases where a deduction will be claimed on thequalifying profits that are generated by a qualifyingintangible asset based on the provisions of section9(k) of the Law.
- The increased deduction indicated above will apply onthe expenditure that will be incurred during the years2022, 2023 and 2024.
For any further guidance regarding this procedure or if you require an initial consultation, please do not hesitate to contact our Law Firm at [email protected], +357 22 261 777 or +357 25 261 777 or please visit our office in Nicosia or Limassol.