Overall income is defined as the gross income earned from qualifying intangible assets during the tax year, minus any direct costs incurred for generating the income.Overall income includes, but is not limited to:
royalties or other amounts resulting from the use of qualifying intangible assets
license income for the operation of qualifying intangible assets
any amount received from insurance or as compensation in relation to qualifying intangible assets
income from the disposal of qualifying intangible assets, excluding profits of a capital nature
embedded income of qualifying intangible assets arising from the sale of products or services, or from the use of procedures that are directly related to the assets
On calculating overall income, direct costs include as following:
all costs incurred, either directly or indirectly, wholly and exclusively for the purpose of earning the income from qualifying intangible assets
the amortization of the cost of the assets
notional interest on equity contributed to finance the development of the assets (being a notional interest tax deduction allowed by Cyprus tax provisions)