Top 5 Tax Deductions Every Small Business in Cyprus Should Know
· 5 min read · Tsquared Services
1. Business-use expenses
Rent, utilities, software, professional fees and travel incurred wholly and exclusively for the business are deductible against profit.
2. Capital allowances
Equipment, vehicles (where allowed), computers and buildings attract annual wear-and-tear allowances instead of an immediate expense.
3. Employer contributions
Employer Social Insurance, GHS and approved provident fund contributions are deductible.
4. Notional interest deduction
Companies funded with new equity can claim a notional interest deduction, subject to limits, reducing the effective rate on profits.
5. Intellectual property and R&D
Qualifying IP income and research costs may benefit from enhanced deductions under the Cyprus IP regime.
This article is general information, not personal tax advice. Contact us for advice on your situation.