Notional Interest Deduction on Equity Rules
On 2015, Cyprus amended its Income Tax Law to introduce a Notional Interest Deduction on equity.
Notional interest deduction is a tax allowable deduction on corporate equity which is granted when “new equity” is used to finance most types of business assets.
New Non Domiciled Rules and Notional Interest Deductions
The new non domiciled rules were introduced to further entice corporate executives and high net worth individuals to take up residency in Cyprus.
The Special Contribution for Defense Law (the SDC Law) has now been amended to incorporate the non-domiciled rules exempting the income (whether actual or deemed) of persons who are not considered to be domiciled in Cyprus from payment of special contribution for defense tax, even if they are considered to be tax residents of Cyprus.
Cyprus Company Law Updates
The Companies Law was amended by Law 97(I) and the provisions of the Amending Law are the result of the transposition of the EU Accounting Directive (2013/34/EU) into domestic law. All changes are effective for period beginning on or after 1 January 2016.