Introduces new tax deductions for R&D
20 Jul 2022
On 7 July 2022, the Parliament of Cyprus introduced new tax deductions for research and development (R&D) expenses. The expenditure for scientific research carried out by any business, as well as R&D expenses carried out by small and medium-sized innovative companies shall be deducted from taxable income if they were wholly and exclusively incurred for the production of income.
Additional deduction equal to 20 per cent of these costs is granted for expenses incurred in the years 2022, 2023 and 2024, including expenses of a capital nature. The condition is that the person carrying on a business should have the economic ownership of the intangible asset that arises or is likely to arise from incurring such expenses.
The amendments are effective as from 20 July 2022
Nature of measure:
Type:
-
Promotion and facilitation (Investment incentives)
Industry:
Inward FDI:
No
Outward FDI:
No
Sources:
