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PKF Cyprus

A member of PKF International. A global family of legally independent firms.

Cyprus Income tax

Cyprus Tax – Capital Allowances

 

CAPITAL ALLOWANCES

The annual capital allowances known as wear and tear allowances (As approved by the Cyprus tax Authorities), are calculated on the acquisition cost of the fixed assets as follows:

Buildings: (Note 1)
Commercial 3%
Industrial, agricultural and hotel 4%
Metallic frame of greenhouses 10
Timber frame of greenhouses 331/3%
Machinery and equipment: (Note 2)
Plant and machinery 10%
Furniture and fittings 10%
Agricultural machinery and tools 15%
Computers & Computer hardware 20%
Intellectual Property – 5 years 20%
Vehicles:
Motor vehicles other than saloon cars 20%
Forklifts, tractors, excavators, bulldozers, oil tanks
and loading vehicles 25%
Ships:
New commercial vessels 8%
New passenger vessels 6%
Sailing vessels 4.5%
Steamers, tugs and fishing vessels 6%
Motor launches 12.5%
Second-hand commercial and passenger vessels over its remaining useful life
Loose tools 331/3%
Videotapes of video clubs 50%
Application software:
Over €1.709 331/3%
Up to €1.709 100%

Notes:

1. Industrial and hotel buildings acquired during the years 2012 – 2018 (inclusive) are eligible to tax depreciation at the rate of 7% per annum. For acquisitions after 1/1/2019 the capital allowance will be 4%.

2. Plant and machinery acquired during the years 2012 – 2016 (inclusive) are eligible to tax depreciation at the rate of 20% (excluding such assets which are already eligible for a higher annual tax rate of tax depreciation). For acquisitions after 1/1/2019 the capital allowance will be 10%.

3. Any expenditure of a capital nature incurred for the development or acquisition of intangible assets may be claimed as a tax deduction and will be claimed on a straight-line basis in the tax year which it was incurred and the immediate four following years.

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Email: info@pkf-nic.com

 

Last update: March 2020

The authors expressly disclaim all and any liability and responsibility to any person, entity or corporation who acts or fails to act as a consequence of any reliance upon the whole or any part of the contents of this publication.

Accordingly no person, entity or corporation should act or rely upon any matter or information as contained or implied within this publication without first obtaining advice from an appropriately qualified professional person or firm of advisors, and ensuring that such advice specifically relates to their particular circumstances.

PKF Cyprus firms are member firms of the PKF International Limited network of legally independent firms and do not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.