A bill amending the Income Tax Law, so that the existing tax exemption for the amount of investment in an approved Small and Medium Innovative enterprise to be extended to corporate investors other than natural persons, was approved by the Council of Ministers on Tuesday.
According to an announcement by the Ministry of Finance, the bill is included in the commitments of the National Recovery and Sustainability Plan in section 3.2 "Enhanced Research and Innovation", which aims to provide tax incentives to attract investment in Research and Innovation. is a milestone in the Recovery and Sustainability Plan.
Furthermore, this bill completes the package of tax measures of the Action Plan to attract companies to operate or expand their activities in Cyprus, as approved by the Council of Ministers in October 2021.
The proposed framework has been formulated following a series of consultations and an approval decision taken by the European Commission's Directorate-General for Competition.
The tax advantage will be calculated as 30% of the amount invested for equity investment by a legal entity in an approved Small and Medium Innovative Enterprise, provided that this deduction will not exceed 50% of the taxable income of the legal entity and will not exceed amount of € 150.000.
It is noted that the start date of this framework will be the 14th day of February, 2022, the date of the decision by the Directorate-General for Competition of the European Commission.
This bill will be submitted to the House of Representatives for study and voting.
Source: KYPE