The Ministry of Finance has announced that there is an upcoming amendment in regards to the Intellectual Property tax regime.
The amendment will entail Action 5 of the Organisation for Economic Co-operation and Development (OECD), issued on 5/10/2015 for the Action Plan against 'Base Erosion and Profit Shifting' (BEPS) as well as the Conclusions of the ECOFIN Council adopted on 8/12/2015.
The approach of the Action 5 requires the existence of material activity which includes the clear interconnection between the rights which create the income and the activity which contributes to that income.
The intention of the Cyprus Authorities is the IP legal framework to be amended in line with the provisions of Action 5 and to provide for the inclusion of persons, who acquire or already acquired Intellectual Property, in a competitive tax regime fully aligned as from 1/7/2016.
