On 14 October 2016, the Cyprus parliament adopted amendments to the country's intellectual property (IP) regime to align the regime with the guidelines developed as part of BEPS Action 5. Key aspects of the amended regime include:
- An 80% tax rate deduction (effective 2.5% rate) for profits derived from qualifying IP assets, with related losses also reduced by 80%;
- Qualifying IP assets include patents, copyrighted software, and utility models, as well as certain other useful and novel IP asse…