Amendments To The Revenue Tax Legislation – Revenue Tax

08 July 2022

Vrikis & Kouppi LLC

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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.