Local
articles | 13 December 2017 | EY Cyprus

Cyprus: Increased capital allowances for the tax years 2017 and 2018

The House of Representatives recently voted an amendment in the Income Tax Law regarding the capital allowances that can be claimed for certain types of assets.

Specifically, increased capital allowances are available for the following capital expenditure:

  • For all plant and machinery acquired during 2017 and 2018,  a deduction for wear and tear at 20% per annum will be allowed (increased from 10% per annum).
  • For industrial and hotel buildings acquired during 2017 and 2018, a deduction for wear and tear at 7% per annum will be allowed (increased from 4% per annum).
  • For buildings used for agricultural and livestock production which were acquired during 2017 and 2018, a deduction for wear and tear at 7% per annum will be allowed (increased from 4% per annum).                                        

Cooperation Partners
  • Logo for Association of Cyprus Banks
  • Logo for Cyprus Shipping Chamber
  • Logo for Cyprus Investment Funds Association
  • Logo for Cyprus International Businesses Association
  • Logo for CFA Cyprus
  • Logo for Cyprus Chamber of Commerce and Industry
  • Logo for Cyprus In Your Heart
  • Logo for Invest Cyprus
  • Logo for Ministry of Energy, Commerce, Industry and Tourism