The Cabinet of Ministers at its meeting on June 21, 2022, approved a bill amending the Income Tax Law to extend the existing tax exemption for the amount invested in an approved Small and Medium Innovative Enterprise to corporate investors other than natural persons.
The Bill is included as part of the commitments of the National Recovery and Resilience Plan under Section 3.2 "Enhanced Research and Innovation", which aims to provide tax incentives to attract investment in the Research and Innovation sector, which is a milestone of the Recovery and Resilience Plan. Furthermore, this Bill completes the package of tax measures of the Action Plan for attracting companies to operate or expand their activities in Cyprus, as approved by the Council of Ministers in October 2021.
The proposed framework has been developed after a series of consultations and following 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 an equity investment by a legal entity in an approved small and medium-sized innovative enterprise, provided that this deduction does not exceed 50% of the taxable income of the legal entity and does not exceed €150,000.
It should be noted that the starting date of the framework will be the 14th day of February, 2022, the date of the decision by the European Commission's Directorate-General for Competition.
This bill will be submitted to the House of Representatives for study and vote.
(EC/SX)
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO
Source
