Cyprus has introduced amendments to the rules for the deduction of R&D expenses, including a temporary 20% increase in allowed deductions. The amendments are provided by the Income Tax (Amendment) (No. 5) Law of 2022, which amends Article 9 (Deductible Expenses) of the Income Tax Law to replace the provisions on the deduction of R&D expenses. The amendment law was published in the Official Gazette on 20 July 2022 and is generally effective from that date.
In particular, the new prov…