Amendments to Cyprus’s IP regime

The House of Representatives has enacted long anticipated amendments to Cyprus’ “IP Box regime”, introduced in the Income Tax Law and published in the Official Gazette of the Republic on 27 October 2016. The amendments provide for the gradual phasing out of the current IP Box regime and the introduction of a new IP regime that is consistent with the latest international developments on the taxation of IP income and the OECD’s action plan to counter base erosion and profit shifting (BEPS). The Regulations provide detailed guidance in the application of the new IP Box regime.