Limitation of loss from IP

Limitation of loss generated from the use of the IP Tax regime

Under the current legislation, profits from the use or profits from the sale of intellectual property owned or developed by a Cyprus Company are eligible for 80% deemed deduction. The law is amended to cover the case of losses generated from the use of the IP Tax regime. In such a case, only 20% of tax losses can be offset against income from other sources or to be carried forward to be offset against income of the following tax years.

This change applies retrospectively since the year 2012, year of introduction of the IP Tax regime.

On 10th of December 2015, the House of Representatives voted a number of significant tax law amendments that were published in the Government Gazette on 17 December 2015.

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