IP Box Regime (known also as a patent box, innovation box or IP Box) is a corporate tax regime used by many countries to incentivize research and development activities by taxing revenues deriving from licenses, royalties, patents, sale or transfer of qualified ip assets di erently o ering lower taxes compared to other commercial revenues.
DISCOVER THE ADVANTAGE OF THE CYPRUS IP BOX REGIME
The Cyprus IP Box Regime o ers significant tax benefits for businesses that exploit Intellectual property (IP) assets.
Here is a quick overview of the key advantages:
- 80% exemption on qualified profit from IP assets
- 0% tax on gains from the disposal of IP assets classified as capital transactions
- Amortization period of up to 20 years.
QUALIFYING INTANGIBLE ASSETS
The Regime covers a broad range of Qualifying intangible assets, including:
- PATENTS
- COMPUTER SOFTWARE
- UTILITY MODELS
- IP ASSETS PROTECTING PLANTS AND GENETIC MATERIAL
- EXTENSIONS OF PATENT PROTECTIONS
IP BOX COMPARISON SUMMARY
The Cyprus IP box regime o ers a maximum tax rate of 2.5% on income derived from IP assets.
In Comparison, its closets competitors, Belgium, Hungary and Luxembourg which o ffer significantly higher rates than Cyprus.
We at Highworth, can facilitate your throughout the process of advisory, consultation and implementation for the regime.
