NOTIONAL INTEREST DEDUCTION ON NEW EQUITY
from 1 January 2015, the Government has introduced the Notional Interest Deduction (NID) regime on equity.
NID will be allowed on “new equity” funds introduced into a Cyprus Tax Resident company and which funds are used for the operations of the company. Foreign companies that maintain a Permanent establishment in the Republic can also benefit from this provision.
The NID will equal the multiple of “reference interest rate” and the “new equity”.
Download a Russian translation of the Article : Удержание условного процента при новом капитале