Cyprus government has approved new taxation incentives to boost and support Cyprus start-up businesses. These are practices which have been followed by other governments which they aim to boost and support the start–up sector.
The Cyprus incentives will grant to Cyprus start-up businesses tax exemptions of up to 50% with a maximum annual amount of €150,000
The Cyprus tax exemption on start – up businesses, will be granted to individuals who invest in innovative activities directly or through investment funds. The investment on Cyprus start – up businesses can take the form of shares, loans, or provision of guarantees. A Cyprus innovative business activity means a business which spends 10% of its operating expenses on research and development in at least one of the last three years. This should be verifiable by an external auditor. Cyprus start – up business activities should be verifiable by the provision of a business plan.
The definition of innovative activities will not only consider research and development but will also cover existing and young Cyprus businesses which have innovative ideas that can be turned into commercial products.
Cyprus taxation Incentives will come into force after approved by the Cyprus parliament
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