Amendments to the notional interest deduction (NID) rules in Cyprus were approved on 16 June 2020. One of the main changes concerns the determination of the applicable NID rate.
Under the prior rules, the NID rate is based on the higher of the Cyprus 10-year government bond yield or equivalent bond yield of the country in which the assets funded by the new equity are utilized, increased by 3%. Under the new rules, the NID rate is equal to the 10-year government bond yield of the country in …