Taxand Cyprus explains the recent developments in the Cyprus Intellectual Property tax field.
Are you prepared for 30 June 2016 and 31 December 2016?
If you already own an IP box Company in Cyprus, or if engaging to one is of your interests, recent international developments at G20 / OECD / EU level, and the Cyprus Ministry of Finance (MoF) 30 December 2015 announcement, requires your special attention.
As per this announcement, amendments to the current Cyprus Intellectual Property tax regime will be promoted, so that a new IP tax regime is introduced as from 1 July 2016. These changes will incorporate the recommendations of Action 5 of the Organisation for Economic Co-operation and Development (OECD), which were issued on 5 October 2015 for the Action Plan against ‘Base Erosion and Profit Shifting’ (BEPS) , together with the Conclusions of the ECOFIN Council adopted on 8 December 2015. Further, the OECD’s Action 5 report has been endorsed by the G20 and OECD countries.
Additionally, it has also been endorsed by Council of the European Union which in December 2015 invited the EU’s Code of Conduct Group (Business Taxation) to follow the report’s approach.
The presented news is significant and could have an impact on your existing or planned structures.