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.
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.