cyprus consultancy Cyprus IP Box intellectual property Regime

CYPRUS HAS THE LOWEST TAX RATE ON IP BOX WITHIN THE EUROPEAN UNION!

STEPS TAKEN:

1. At first we thoroughly evaluate the IP tax status of the Company i.e. whether the Company qualifies for IP BOX or not based on the applicable Laws

2. Subsequently we advise on steps to be taken to comply in full and gain the maximum benefits of the IP Regime in Cyprus i.e. minimize outsourcing associated with R&D and maximise in house R&D by hiring more staff

3. We prepare our report to the Tax Authorities including all the supporting documentation strengthening our position i.e. agreements with suppliers/customers

4. Within 1 month from submission we obtain the confirmation from the Tax Department confirming that the said Company can claim 80% deemed deduction on any “qualifying profits`` from the disposal or license/royalty income.

5. Conclusion: the Company effectively pays as low as 2.5% of effective tax on its IP BOX income.

REQUIREMENTS OF THE IP BOX REGIME IN CYPRUS:

  • Qualifying assets: Mainly Patents and Computer Software
  • Non qualifying assets: Business names and Trademarks
  • Internally or externally developed? Internally developed OR acquired at arm’s length
  • Qualifying revenue: Royalty and Licensing income, profits from disposal of IP
We Have An All-Rounded Team Ready to Help

FAQs

Should all R&D staff work internally (in-house)?

You can outsource R&D but the more you outsource the higher the effective tax rate it becomes see à (https://cyprusconsultancy.com/cyprus-intellectual-property-ip/)

Can I purchase an IP asset and still qualify?

As long as the asset is purchased at arm’s length and there is continued R&D yes.

Can you confirm a positive tax ruling for IP BOX in advance?

No but we can review the status of the IP asset within the Company and consult on steps to be taken to comply with the Regime.

Can I transfer my IT business to Cyprus and claim IP BOX?

Of course, you can re-domicile your business to Cyprus à https://cyprusconsultancy.com/cyprus-company-redomiciliation/

OR

You can incorporate a new Cyprus Company and transfer the activities on the new Company.

Both cases as long as you qualify with the above requirements you can claim IP BOX.

Still have questions?

Call us at +357 24663570

Contact us

Where to find us:

81, Griva Digeni Avenue, MARINOS Court, 3rd floor, office 301

P.O. BOx  42656, P.C. 6501, 6043

Larnaca – Cyprus

Tel: +357 24663402 , Fax: +357 24663409

E-mail: admin@cyprusconsultancy.com

    The information on our website is not designed to offer professional advice and is not exhaustive but rather designed to give an idea of what our Company offers. Should you be interested to find out more about who we are and what we do kindly reach out to our highly skilled team members for a preliminary assessment of your needs and an introductory consultation.

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