Lawyer Monthly - November 2021 Edition

62 WWW.LAWYER-MONTHLY.COM | NOV 2021 INTELLECTUAL PROPERTY - THE CYPRUS IP BOX REGIME: FROM TAX HAVEN TO TAX HUB markets of the Middle East and North Africa in mind. The IP taxation system – modernised in 2016 – is robust, flexible and generous, and yet fully-compliantwithEUand international legal and regulatory frameworks, including the WIPO (a member since 1984) and the OECD’s Base Erosion and Profit Shifting regime (BEPS). Not surprisingly, Cyprus has attracted significant technology-based and IP-rich businesses in recent years. But for mobile tech businesses looking for a new home Having joined the European Union in 2004 and the euro in 2008, Cyprus has been busy transforming itself, and it has not been considered a tax haven for some time. In the OECD’s EOIR table (transparency and exchange of information on request) Cyprus has the same rating as the United States, Germany and the United Kingdom. For international technology businesses it is now one of the most supportive and welcoming places inside the EU. The island’s political and fiscal systems are stable and business-friendly, with the usual EU benefits of visa-free travel and numerous trade agreements and double- taxation treaties. The regulatory and legal systems are easy to navigate because they are based on English common law. A unique position on the very rim of Europe makes it a perfect location for businesses with the From Tax Haven To TAX HUB The Cyprus IP Box Regime: The government of Cyprus has implemented a series of economic reforms aimed at attractting intellectual property-focused businesses. TMF Cyprus’ Managing Director, Andreas Constantinides, suggests that the rapid modernisation of the Cyprus economy should give IP-rich international companies cause to look closely at its ‘fast-track business activation scheme’.