Following
our previous newsfeed
on this, the tax incentives for investing in innovative enterprises have been
extended even further following a law approved by Cyprus Parliament recently. The
extension concerns the application of the incentives also for corporate
investors (so far only physical persons were entitled to them).
The
incentives aim to support start-up entities in developing innovative products
and services, as well as to enhance entrepreneurship and strengthen the
entrepreneurial ecosystem of Cyprus.
The incentives provide that a qualifying investor
which makes a risk-finance investment
in an innovative small and
medium-sized enterprise (SME) can deduct the cost of that
investment from its taxable income.
The
deduction will be calculated as 30% of the amount invested, provided it will
not exceed 50% of the taxable income of the investor and that it will not
exceed the amount of €150,000.
The tax benefit will have a retrospective effect from 14 February 2022, date at which the proposal gained approval from the Directorate-General for Competition of the European Commission.
