Cyprus’ Council of Ministers has approved a bill which amends the income tax law so that the existing tax exemption for an investment in a small or medium-sized innovation company is extended to cover corporate investors as well.
According to a press release by the Ministry of Finance, the bill is included in the commitments of the National Recovery and Resilience Plan, which aims to provide tax incentives to attract investments in the field of research and innovation.
The tax advantage will be calculated as 30% of the amount invested in own funds by a legal entity in an approved small or medium-sized innovation enterprise, provided that this deduction will not exceed 50% of the taxable income of the legal entity and will not exceed 150,000 euros, according to the statement released on Tuesday.
The proposed framework has been drafted following a series of consultations and a decision by the European Commission’s Directorate-General for Competition.
The start date of this framework will be February 14, 2022, when the Directorate-General for Competition made its decision. The bill will be submitted to the House of Representatives.