The IP BOX Cyprus Regime

INTRODUCTION

This publication¹ refers to the new Regime which is applicable for Qualifying IP developed or acquired after the 01/07/2016.

Effectively, the new Regime provides a tax exemption of 80% on profits qualifying for the regime, which means that only the 20% shall be subject to the corporation tax of 12.5% and, as such, this will result to an effective tax rate of as low as 2.5%.

EU OECD AND BEPS COMPLIANCE

The scheme offers a competitive intellectual property vehicle fully compliant with the provisions of the OECD BEPS Action 5 and the EU standards.

THE NEW REGIME

The new regime sets some additional conditions which make it even more specific as to which assets are qualified under the IP regime.

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