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)|
|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%|
|Motor vehicles other than saloon cars||20%|
|Forklifts, tractors, excavators, bulldozers, oil tanks|
|and loading vehicles||25%|
|New commercial vessels||8%|
|New passenger vessels||6%|
|Steamers, tugs and fishing vessels||6%|
|Second-hand commercial and passenger vessels||over its remaining useful life|
|Videotapes of video clubs||50%|
|Up to €1.709||100%|
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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Last update: March 2020
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