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 2021. 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:

 

31/12/2021

NID Reference Interest Rate 2022

Abu Dhabi

N/A

N/A

Albania

N/A

N/A

Argentina

3,508

8,508

Armenia

9,722

14,722

Australia

1,670

6,670

Austria

0,072

5,072

Azerbaijan

N/A

N/A

Belarus(US$)

9,785

14,785

Belgium

0,180

5,180

Bermuda(US$)

2,376

7,376

British Virgin Islands

N/A

N/A

Bulgaria

0,690

5,690

Canada

1,479

6,479

Cayman Islands

N/A

N/A

Chile

5,652

10,652

Chile(€)

0,834

5,834

Chile(US$)

2,560

7,560

China

2,775

7,775

Costa Rica

6,363

11,363

Croatia

0,560

5,560

Cyprus

0,629

5,629

Czech Republic

2,797

7,797

Denmark

0,061

5,061

Dubai(€)

N/A

N/A

Dubai (US$)

2,533

7,533

Egypt

14,913

19,913

Egypt(US$)

7,570

12,570

Estonia

0,122

5,122

Finland

0,082

5,082

France

0,195

5,195

Germany

-0,206

4,794

Guernsey

N/A

N/A

Greece

1,135

6,135

Hong Kong

1,524

6,524

Hungary

4,484

9,484

India

6,509

11,509

Ireland

0,237

5,237

Isle of Man

1,502

6,502

Israel

1,290

6,290

Israel(US$)

1,919

6,919

Italy

1,170

6,170

Ivory Coast

N/A

N/A

Jordan(US$)

5,631

11,631

Kazakhstan (€)

1,444

6,444

Kazakhstan (US$)

2,107

7,107

Kenya

12,660

17,660

Latvia

0,323

5,323

Lebanon

N/A

N/A

Lithuania

0,259

5,259

Luxembourg

0,129

5,129

Morocco

2,239

7,239

Mauritius

4,200

9,200

Netherlands

-0,035

4,965

Nigeria

12,607

17,607

Nigeria(€)

N/A

N/A

Norway

1,699

6,699

Poland

3,646

8,646

Portugal

0,462

5,462

Romania

5,146

10,146

Russia

8,390

13,390

Russia (US$)

1,994

6,994

Saudi Arabia

2,932

7,932

Serbia

4,126

9,126

Singapore

1,638

6,638

Slovakia

-0,083

4,917

Slovenia

0,349

5,349

South Africa

9,799

14,799

Spain

0,563

5,563

Sweden

0,220

5,220

Switzerland

-0,153

4,847

Taiwan

0,700

5,700

U.S.A

1,512

6,512

Ukraine (€)

N/A

N/A

Ukraine (US$)

8,902

13,902

United Arab Emirates

N/A

N/A

United Kingdom

1,020

6,020

Vietnam

2,066

7,066

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.

George Markides
Board Member
KPMG Limited
Head of Tax Services

Katia Papanicolaou
Board Member     
KPMG Limited
Direct Tax Services            

Michael Halios
Board Member
International Tax Services
KPMG Limited

Connect with us

Costas Markides
Board Member
KPMG Limited
International Tax Services

Stelios Stylianou
Board Member
Direct Tax Services
KPMG Limited

Michalis Loizides
Board Member
Tax & Legal Services
KPMG Limited

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