WEDNESDAY, 25 APR 2018

 

CONNECT

Facebook Linked In Twitter
MTN_07/07-10/04_728x90px
GloriaJeans_266x90px
IMH LTD

Kalogerou: Cyprus is an Ideal Destination for Startups and Tech Companies

CIBA Appoints Doxia Nikia as New President

IMH LTD
MTN_07/07-10/04_468x60px

PROFESSIONAL SERVICES

brought to you by PWC

Incentives or Tax deductions for Investment in Small and Medium Size Innovative Business

Incentives or Tax deductions for Investment in Small and Medium Size Innovative Business

The Cyprus Government aiming to give motive and to produce investments introduced a new framework with tax incentives for investments in small and medium sized innovative business. Under the new Article 9A of the Income Tax Law 2002 introduced by the Income Tax (Amendment)(No.2) Law 2016(135(i)/2016 qualified independent investors that make a risk-finance investment in an “innovative small and medium sized enterprise” are allowed to deduct the cost of the investment from their taxable income in the year the investment is made.
 

What is defined as small or medium sized company under EU regulations
Under Annex 1 of EU Regulation 651/2014 a small or medium sized company is one that: 

Has fewer than 250 employees
Its annual balance sheet annual turnover does not exceed Euro 50 million
 
 
What is classified as innovative business in Cyprus
 
According to the definition provided in Article 9A of the Income Tax law a qualified investee company must: 
 
operate in Cyprus.
 
at the time of the investment it is not a listed company- unless it is listed in an alternative trading platform, or
 
It operated in the market for less than seven years following its first commercial sale (this restriction does not apply under certain conditions for follow-on investments), or
 
it requires an initial risk finance assessment which is based on a business plan prepared in view of entering a news market that gives a higher than 50% of its average annual turnover in the preceding 5 years AND
 
it has been approved by Cyprus Ministry of Finance as a qualifying innovative small or medium size enterprise (SME) 
on the basis of the SME’s research and the accounted research and development expense (R&D) is at least 10% of its total operating costs as verified by an external auditor.
 
The definition of innovative business now covers a broad range as it now allows the more effective use of innovative ideas by entrepreneurs and people to facilitate the way toward commercially successful products. Thus, there is a move away from the restrictive concept of scientific research and it refers to innovation in its broader sense and it now includes: 
 
The successful commercialisation of product and service innovations
 
The industrial exploitation of innovative manufacturing technologies
 
Innovative business models
 
 
For further information contact, Marina Loizou, Partner, Areti Charidemou & Associates LLC, marina@aretilaw.com

 
 

MORE ON PROFESSIONAL SERVICES

Top EU VAT Expert to Address Seminar in Limassol

Prof. Dr. Ben J. M. Terra, arguably Europe’s top authority on Value Added Tax ...

Eurofast Athens Organises Seminar on Romania & Balkan Region

Eurofast Athens organized the Seminar "Spotlight on Romania & Balkan ...

FROM AROUND GOLDNEWS

   

Pilides: Ship Financing a Drive for Further Development of Cyprus Maritime Cluster

We foresee ship financing as another drive to further develop our maritime cluster, particularly in view of the new opportunities arising in Cyprus following ...
   

WhatsApp to Raise Minimum Age Limit to 16 in EU

Popular messaging service WhatsApp is banning under-16s from using its platform in the European Union, the BBC reports. Users must currently be at least ...
   

Cyprus Business Show 2018

Nicosia Chamber of Commerce and Industry (NCCI) and IMH are organizing for the first time the “Cyprus Business Show 2018: The Start-up, Franchise, ...
   

Boohoo Beats Forecasts With 40% Jump in Profit

British online fashion retailer Boohoo on Wednesday 25 April beat forecasts with a 40 percent rise in 2017-18 profit, driven by a jump in revenue on rising ...
   

Google Overhauls Gmail to Lure Businesses Away From Microsoft

Alphabet Inc’s Google unveiled on Wednesday 25 April its first Gmail redesign since 2013, capping what the company says was an expensive overhaul two ...
   

Kalogerou: Cyprus is an Ideal Destination for Startups and Tech Companies

Cyprus comprises a safe, liable and competitive destination for startups and tech companies aiming for a global outreach, and is fully implementing relevant ...
   

DP World Limassol Promotes Cruise Tourism

With the aim of promoting Cyprus as an attractive tourist destination and boosting cruise tourism, DP World Limassol will host leading cruise sector executives ...
   

CIBA Appoints Doxia Nikia as New President

The Cyprus International Business Association (CIBA) announces that Doxia Nikia, Director of D.D. Fidelity Associates Ltd, has been appointed as their new ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Invest Career 19/04-26/08
GloriaJeans_300x250px

IMH LTD