Cyprus first to make crucial changes to tax laws
In today’s saving & investing news changes are being made in the Cypriot tax laws in pursuant of the Cyprus Income Tax law.
It was issued in order to provide assistance in the efforts of Cyprus to become more established and competitive especially when it comes to the Intellectual Property jurisdiction.
The goal of the mandate is to inspire a structure that is tax-effective where in the income is being produced from royalties.
This was amended last May 24, 2012 and was made known to the public on July 6, 2012.
This law will provide assistance with regards to the effort of providing protection for IP rights in connection with copyrights, trademarks, computer software, know-how, R&D activities including client’s lists and patents.
The move is set on finding a way to make the most profit out of the system that has been established over the IP rights when it comes to the expenses, development, and amortization including the license and the purchase.
The law will include the profits of the Cypriot company, it will be distributed including the dividends to those who are non-resident shareholders without the need for withholding and other types of taxation.
This law will pave the way for capitol allowance benefits for the development of rights of IP including the intangible assets this entire are set to gain from 20 percent capital allowance that this new law would bring.
This law is seen to provide a significant improvement in the cash-flow benefits of the companies and people involved. Using this changes a company can benefit from the tax as well as the capital allowance and such given rights can produce gains in the long run.
As part of the improvement of the law a case study is set to be done in order to find a productive way to apply the amendments through the income tax law so that it can be better incorporated to maximize the benefits in the coming years.