Cyprus Clarifies New Equity and Other Aspects of Notional Interest Deduction

The Cyprus Tax Department recently issued a circular to clarify certain aspects of the country's notional interest deduction (NID), which is available for tax years beginning on or after 1 January 2015. The NID is equal to 3% plus a reference rate equal to the higher of the Cyprus 10-year government bond yield or equivalent bond yield of the country in which the assets funded by new equity are utilized.

New Equity

The circular clarifies that new equity includes any equity introduced from …