The Cyprus House of Representatives has passed into law two of the tax reform measures introduced by the Cabinet on 2 July 2015 ({News-2015-07-15/P/2- previous coverage}). The measures passed are as follows.
Notional Interest Deduction
A notional interest deduction is introduced on new corporate equity investment in Cyprus resident entities, as well as permanent establishments of non-residents. The notional interest is equal to the Cyprus 10-year government bond yield plus 3%, multiplied b…