The Cyprus Income Tax Law was amended in 2012 to introduce accelerated capital allowances for tax purposes on assets purchased during the years 2012 to 2014 inclusive. The annual writing down allowance for plant and machinery was doubled from 10 percent to 20 percent (if a higher rate than 20 percent applied to the category of assets concerned, that higher rate continued to be available) and the annual writing down allowance for industrial buildings and hotels was increased from 4 percent to 7 percent. In 2015 the Income Tax Law was amended again to extend the new higher rates to assets purchased during 2015 and 2016.
Law 165(I) of 2017, which was published in the official government gazette on 24 November 2017, extends the higher rates for a further two years. For plant and machinery acquired up to the end of 2018 the annual writing down allowance rate will be 20 percent or any higher rate applying to the category of assets concerned, and for industrial buildings and hotels acquired up to the end of 2018 it will be 7 percent.
In addition the new law introduces an annual writing down allowance of 7 percent for farm buildings and livestock production units acquired during 2017 and 2018.