The provisions of the Cyprus Tax law for the treatment of intangible assets have been amended on 14/08/2020, retrospectively from 01/01/2020.
The amendments as explained below they enhance the attractiveness of the regime by:
- abolishing any tax on the gain realized on the disposal of the intangible assets (even on the capital allowances claimed as tax deduction) and;
- provide flexibility to taxpayers on the claim of capital allowances over the useful life of the intangible
An analysis of the amendments is presented as below:
The above amendments do not apply for IP assets existed up to 30/06/2016 and fall into the grandfathering provisions of the law that continue to apply up to 30/06/2021.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.