While an organization’s IP is clearly an asset, it is not the type of asset that shows up in the organization’s balance sheet with a concrete value. At APC, we help IP owners determine the value of their IP assets and we assist them in the development and implementation of a strategy to optimize and monetize those assets. Our expert team helps clients deal with the myriad of challenges and complexities of the IP sector, by defining, generating and evaluating strategic options as well as navigating the many paths to IP monetization.

 

Cyprus has one of the most beneficial Intellectual Property (IP box) regimes in the world and it is developing into a leading IP location. In fact, Cyprus combines an efficient IP tax regime and international protection through the relevant IP International Treaties and Protocols (including the Madrid Agreement, the TRIPS Agreement, the European Patent Convention, the Patent Cooperation Treaty, the Berne Convention, the Rome Convention and the WIPO Copyright Treaty) in all of which it is a full member. In addition, the EU directives and Regulations relating to IP protection apply and have been introduced fully into Cyprus domestic legislation. Therefore, with a single IP registration process in Cyprus, IP rights owned by Cyprus companies may enjoy full protection in EU Member States.

 

The new Cyprus “IP box” regime, which came into effect on 1 July 2016, is fully harmonized with the international developments relating to the tax treatment of IP income and recommendations under the OECD’s BEPS project. In brief, under the new regime, 80% of qualifying profits generated from qualifying assets will be deemed to be tax deductible expenses.

 

The new Cyprus IP box is based on the “nexus approach” which limits the application of the benefit/tax allowance, if research and development is being outsourced to related parties. That is, the benefits of the IP box regime are linked with the R&D expenses incurred by the taxpayer. 

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Our IP related service offerings are detailed below and our team of experts is always ready to assist you.

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• IP ownership structuring for tax optimization and IP utilization control

• Intangible Asset Valuation and IP Impairment testing

• Structuring and implementation of IP sale, disposition and transactions.

• Due Diligence Audits for IP

• Royalty Compliance services

• IP Portfolio Analysis