The application of the accelerated capital allowance rates was extended by two more years (previously applicable until the tax year 2016), following the publication of the relevant legislation in the Official Gazette of the Republic of Cyprus on 24 November 2017.
The following capital allowance rates apply for tax purposes on assets purchased in tax years 2017 and 2018:
– 20% for plant and machinery;
– 7% for industrial buildings and hotels; and
– 7% for farm buildings and livestock production units.