Cyprus: Notional interest deduction “reference rates” for 2024
The tax authority announced the notional interest deduction “reference rates” for a number of countries as of 31 December 2023.
Notional interest deduction “reference rates” for 2024
The tax authority announced the notional interest deduction (NID) “reference rates” for a number of countries as of 31 December 2023.
Background
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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.