The Cyprus Tax Department (CTD) announced that they will amend the Intellectual Property Tax Law to align it with the OECD recommendations as published on the 5th October 2015 Action Plan on the Base Erosion and Profit Shifting. The Action Plan covers preferential tax regimes and in its approach demands the existence of substantial activity that includes direct relation between the IP that creates income and the activity that contributes to this. The amendments are to be carried out before 1st July 2016 and will include a phasing out period for entites that have chosen to apply this.