Intellectual Property system in Cyprus amended

The following amendments are effective from 1 January 2020.

Existing provisions – Summary

Intellectual Property capital expenditure is capitalized and capital allowances are claimed throughout the useful life of the asset with a maximum useful life of 20 years.

New provisions

• Disposal of the Intellectual Property and Preparation of balancing statement.

• Capital Allowances.

• Therefore, at the beginning of each year, the tax written down value of the IP must be recalculated over the remaining useful life of the Intellectual Property.

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