The tax authority announced the notional interest deduction “reference rates” for a number of countries as of 31 December 2023.
The tax authority announced the notional interest deduction (NID) “reference rates” for a number of countries as of 31 December 2023.
The NID reference rate constitutes the interest rate of the 10-year government bond yield of the country in which the new equity is invested (as of 31 December of the previous tax year), for the purposes of granting tax allowance on new capital as per article 9B of the Income Tax Law N.118(I)/2002, as amended.
For countries not mentioned in the announcement, taxpayers may apply to the tax authority for the determination of the appropriate NID reference rate enclosing the interest yields of the 10-year government bonds for the countries concerned based on the Bloomberg Index, or in the absence thereof, their estimation of the applicable rate.
Read a March 2024 report prepared by the KPMG member firm in Cyprus