This guide outlines key practical steps for companies seeking to benefit from the Cyprus IP box regime.

Step 1 – preparation of a tax memorandum: The initial step is the preparation of a detailed tax memorandum. This memorandum considers whether the company meets the strict conditions required to benefit from the Cyprus IP Box regime. A thorough review of all relevant documentation and cost associated with the IP is essential to produce a robust and well-supported conclusion.

Step 2 - the tax ruling request: If the tax memorandum concludes that the Cyprus IP box regime requirements are met, the next step is the preparation and submission of formal tax ruling request to the Cyprus tax authorities (CTA). It is mandatory to obtain a formal written confirmation that the IP box regime will benefit to the applicant.

The core components of the application include:

• Formal tax ruling request letter: This detailed letter must contain a exhaustive description of the facts , the specific tax question being stated and the legal basis for applying for the IP box regime tax benefit.
• Form TD 219: The official application form that needs to be completed and submitted to the CTA alongside the tax ruling request. It captures key information about the taxpayer, any related parties and the nature of the transactions involved.
• CTA fees: A receipt confirming payment of the relevant CTA fee. The standard processing fee is EUR 1,000 and the expedited process carries a fee of EUR 2,000. Expedited rulings are typically processed within 21 working days if all information is submitted correctly; standard requests are processed within 3–6 months. Payment of fees must be electronically, and proof of payment is required at the time of application. Some requests, such as those related to tax exemptions for reorganisations submitted to local tax offices, may be exempt from these fees.
• Supporting documents: Supporting documentation may need to be submitted alongside the tax ruling request which may include the company’s incorporation documents, a business plan, financial projections and any agreements related to the IP.
• Timeliness: The swift provision of all necessary documents and information is crucial for a timely analysis and submission.
• Tax identification: The company must obtain its Tax Identification Number (TIC) from the CTA before the tax ruling request can be submitted.

Applying for the Cyprus IP Box regime is fairly straightforward with a clear understanding of the requirements and adequate preparation. By following the structured phases of assessment and submission, providing all necessary documentation, and adhering to compliance requirements, companies can confidently navigate the path to obtain benefit from the Cyprus IP regime.