2023 Doing Business in Cyprus (India Edition)
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DOING BUSINESS C YPRUS<br />
64<br />
INDIA EDITION<br />
TAX INCENTIVES<br />
The <strong>in</strong>centives also <strong>in</strong>clude the <strong>in</strong>troduction of new tax benefits and tax breaks.<br />
BROADENING TAX INCENTIVES:<br />
• a 50% tax exemption to be granted to new and exist<strong>in</strong>g employees relocat<strong>in</strong>g/<br />
relocated to <strong>Cyprus</strong> with employment remuneration of €55,000 and above (with<br />
the requirement that they were not <strong>Cyprus</strong> residents dur<strong>in</strong>g the previous 10 years)<br />
• beneficiaries of this tax benefit should be entitled to this benefit<br />
for a period of 17 years from the year of employment<br />
TAX EXEMPTION EXTENSION FOR INVESTMENTS IN INNOVATIVE COMPANIES:<br />
• extension of the 50% tax exemption for equity <strong>in</strong>vestment <strong>in</strong><br />
certified <strong>in</strong>novative companies to corporate <strong>in</strong>vestors<br />
INCREASED (COMPARED TO THE REAL) TAX DEDUCTION FOR<br />
RESEARCH AND DEVELOPMENT EXPENDITURE:<br />
• grant<strong>in</strong>g an <strong>in</strong>creased discount on research and development<br />
expenditure (e.g., by 20%). Eligible research and development expenses<br />
will be deducted from taxable <strong>in</strong>come at 120% of actual expenses<br />
NATURALISATION<br />
law proposal to change the naturalisation criteria is currently be<strong>in</strong>g discussed <strong>in</strong><br />
A Parliament.<br />
View from 360, Cyfield
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