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Cyprus government has approved new taxation incentives to boost and support Cyprus start-up businesses. These are practices which have been followed by other governments which they aim to boost and support the start–up sector.
The Cyprus incentives will grant to Cyprus start-up businesses tax exemptions of up to 50% with a maximum annual amount of €150,000
The Cyprus tax exemption on start – up businesses, will be granted to individuals who invest in innovative activities directly or through investment funds. The investment on Cyprus start – up businesses can take the form of shares, loans, or provision of guarantees. A Cyprus innovative business activity means a business which spends 10% of its operating expenses on research and development in at least one of the last three years. This should be verifiable by an external auditor. Cyprus start – up business activities should be verifiable by the provision of a business plan.
The definition of innovative activities will not only consider research and development but will also cover existing and young Cyprus businesses which have innovative ideas that can be turned into commercial products.
Cyprus taxation Incentives will come into force after approved by the Cyprus parliament
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July 2016
PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.
The Cyprus Parliament passed legislation on reduction of Cyprus Immovable Property Tax for the year 2016 onward.
The tax base will be that of year 2015 but the resulting tax will be reduced to 25% for those who will pay their Cyprus Immovable property tax until 31 October 2016.
If the resulting Cyprus Immovable Property Tax is paid between 1 November and 31 December 2016, the reduction will be at 27.5%.
If the resulting Cyprus Immovable Property Tax is paid after 31 December 2016, there will be an additional charge of 10% of the tax due, plus interest and any administrative fines provided for in the legislation.
The legislation also provides the abolition of the Cyprus Immovable Property Tax from 1 January 2017 onward.
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July 2016
PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.
A revised Cyprus – India double taxation treaty was successfully concluded and signed by both countries on 18th November 2016. The agreement is similar to that of Mauritius which entitles the Indian tax authorities to tax capital gains from investments going through Cyprus. The new Cyprus – India double tax treaty provides for a sourced-based taxation on profits from sale of shares. Indian authorities will have the right to tax capital gains from the sale of shares after April 1, 2017. Investments made prior to April 1, 2017 are exempt in the sense that taxing disposal of these shares at any future date remains with the Contracting State of residence of the seller
It is expected that the new Cyprus – Indian Double Taxation treaty will further develop the economic relationship between India and Cyprus. It is also expected that the new Cyprus, Indian double taxation treaty will make Cyprus even more attractive to foreign investments
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July 2016
PKF / ATCO Limited is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. This publication is for information purposes only and should not be considered as professional advice.
