Notional Interest Deduction rates for 2022 The Cypriot Tax Department issued an announcement listing the 10-year government bond yield rates as of 31 December 2021 for various countries with respect to the Notional Interest Deduction (NID) on equity. These yield rates are to be used to determine the reference [...]
Notional Interest Deduction rates for 2021 On 12 February 2021, the Tax Department issued an announcement listing the 10-year government bond yield rates as of 31 December 2020 for various countries with respect to the Notional Interest Deduction (NID) on equity. These yield rates are to be used to [...]
Amendments to the NID rules On 16 June 2020, an amending Income Tax Law (ITL) was published with respect to the Notional Interest Deduction (NID). The revised NID provisions provide increased tax benefits for Cyprus companies financing their operations through new capital and are in line with the recommendations of [...]
Notional Interest Deduction Rates On the table below, you can find the ten-year yield rate of the Government bond of each Country, which increased by 5% (3% up to 31/12/2018), represents the “reference rate” for the purpose of granting tax allowance on new capital, as per article 9B of the Income [...]
Cyprus Notional Interest Deduction (NID) Introduction Generally, companies can be financed via debt, equity or a mixture of both. On the one hand, debt generates interest expense, which is usually a tax-deductible expense for the borrower. Equity on the other hand is associated with dividends, which are not deductible for [...]
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