Incremental NID
This deduction is granted based on the average 5-year increase of a company’s full net equity, known as ‘incremental equity’.
In other words, the annual amount of NID that is tax deductible for a given financial year (x) will be 20% of the company’s qualifying net equity for financial year (x) reduced by the corresponding net equity amount of financial year (x-5).
Currently, the NID rate amounts to 0.443% for SMEs (fiscal year 2023). The exact rate is determined based on the linear bonds (OLO) interest.