JULY 2016 – NOTIONAL INTEREST DEDUCTION- COURTESY OF PWC

In July 2016 the Tax Department issued Circular 2016/10 aiming to provide further clarity on the definition of relevant terms and guidance on the practical application of NID. In summary, Circular 2016/10 provides the following:

  • further guidance on the definitions of ‘new equity’ and ‘NID interest rate’;
  • the introduction of scheduling for the purpose of applying the 80% cap;
  • further guidance on relevant anti-avoidance provisions; and
  • practical numerical examples for the application of NID.

More information can be found in the relevant newsletter here below:-

English:

N-10-2016 (En)

In Greek:

N-10-2016 (Gr)