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- Ελληνικά
The European Commission announced the approval
of a Cypriot programme of private investment support of around two million euros for innovative small and medium-sized enterprises[/B], contributing inter alia to the implementation of the country's National Recovery and Resilience Plan, according to a Commission Communication.
The state support will be provided through tax relief for private investors who decide to invest in innovative small and medium-sized enterprises in their early stages.
In particular, according to the scheme, investors providing financing to companies that meet the necessary criteria will be entitled to tax relief of up to 30% of the amount invested. The overall ceiling for these tax reliefs will not exceed 50% of their total taxable income, up to a maximum of EUR 150,000 per year and EUR 750,000 within five years of the investment.
The programme, as stated, will run until 31 December 2023.
The Commission, it is noted, considered this tax incentive "a necessary and appropriate instrument to strengthen the underdeveloped venture capital market in Cyprus" and found that the aid will be proportional as it will be limited to the minimum necessary.
According to the Commission, the positive impact of the scheme outweighs any distortions to competition and trade that may be caused.
As noted, the Commission gives priority to the assessment of state aid measures included in the national recovery plans presented under the Recovery and Resilience Mechanism.
Cyprus' national Recovery and Resilience Plan has been positively assessed by the Commission and formally adopted by the EU Council in the context of the operation of its Recovery and Resilience Mechanism.
This programme, which is expected to contribute to the implementation of the national plan, was found by the Commission to be in line with EU state aid regulations, in particular the article of the Treaty on the Functioning of the EU that allows Member States to support the development of certain economic activities under certain conditions.
Source: KYPE
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