On 2 July 2015, the Cyprus Cabinet submitted proposed tax reform to the House of Representatives. The main reform measures are summarized as follows.
Notional Interest Deduction
A notional interest deduction would be introduced on new corporate equity investment in Cyprus resident entities, as well as permanent establishments of non-residents. The notional interest would be equal to the Cyprus 10-year government bond yield plus 3%, multiplied by the amount of new equity.
The total deductio…