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Tax alert: NID Reference Interest Rates 2021

Tax alert: NID Reference Interest Rates 2021

The Cyprus Tax Department (CTD) announced the interest yields of the 10-year government bonds for a number of countries as listed below as at 31 December 2020. The interest yields of the 10-year government bonds increased by 5%, represents their “reference rate” for the purposes of granting tax allowance on new capital as per article 9B of the Income Tax Law N.118(I)/2002, as amended.

By way of background, the NID reference rate constitute the interest rate of the 10 year government bond yield of the country in which the new equity is invested (as at 31st December of the previous tax year), increased by 5%.

NID reference rates are as follows:

 

31/12/2020

NID Reference Interest Rate 2021

Abu Dhabi

1,681

6,681

Albania

N/A

N/A

Argentina

3,269

8,269

Armenia

7,485

12,485

Australia

1,005

6,005

Austria

-0,433

4,567

Azerbaijan

N/A

N/A

Belarus(US$)

6,075

11,075

Belgium

-0,388

4,612

Bermuda(US$)

1,783

6,783

British Virgin Islands

N/A

N/A

Bulgaria

0,19

5,190

Canada

0,675

5,674

Cayman Islands

N/A

N/A

China

3,18

8,180

Costa Rica

9,627

14,627

Croatia

0,548

5,548

Cyprus

0,136

5,136

Czech Republic

1,252

6,252

Denmark

-0,459

4,541

Dubai(€)

N/A

N/A

Dubai (US$)

2,594

7,594

Egypt

14,006

19,006

Egypt(US$)

6,678

11,678

Estonia

-0,211

4,789

Finland

-0,425

4,575

France

-0,343

4,567

Germany

-0,388

4,612

Guernsey

N/A

N/A

Greece

0,19

5,190

Hong Kong

0,541

5,541

Hungary

2,135

7,135

India

5,865

10,865

Ireland

-0,318

4,682

Isle of Man

0,985

5,985

Israel

0,77

5,770

Israel(US$)

1,551

6,551

Italy

0,541

5,541

Ivory Coast

N/A

N/A

Jordan(US$)

4,48

9,480

Kazakhstan (€)

0,653

5,653

Kazakhstan (US$)

4,03

9,030

Kenya

11,977

16,977

Latvia

-0,18

4,820

Lebanon

N/A

N/A

Lithuania

-0,197

4,803

Luxembourg

-0,415

4,585

Morocco

2,403

7,403

Mauritius

1,58

6,580

Netherlands

-0,49

4,510

Nigeria

7,261

12,261

Nigeria(€)

N/A

N/A

Norway

0,944

5,944

Poland

1,229

6,229

Portugal

0,026

5,026

Romania

2,959

7,959

Russia

5,91

10,910

Russia (US$)

1,546

6,546

Saudi Arabia

2,399

7,399

Serbia

3,48

8,480

Singapore

0,834

5,834

Slovakia

-0,52

4,480

Slovenia

-0,187

4,813

South Africa

8,736

13,736

Spain

0,043

5,043

Sweden

0,022

5,022

Switzerland

-0,523

4,477

Taiwan

0,3

5,300

U.S.A

0,916

5,916

Ukraine (€)

N/A

N/A

Ukraine (US$)

6,052

11,052

United Arab Emirates

N/A

N/A

United Kingdom

0,192

5,192

Vietnam

2,202

7,202

 

In respect of countries not mentioned in the announcement, taxpayers may apply to the CTD for the determination of the appropriate NID Reference rate enclosing the interest yields of the 10-year government bonds for the countries concerned as identified on the basis of the Bloomberg Index, or in the absence thereof, their estimation of the applicable rate.

KPMG Limited may offer further assistance in the determination of the applicable NID Reference Rates via the submission of appropriate ruling requests to the CTD.

For any further information required, please do not hesitate to contact us.