Article Posted date 13 June 2023

Following the initial announcement of the Cyprus Tax Department (CTD) onthe interest yields of the 10-year government bonds for a number of countries as listed below as at 31 December 2022, the CTD proceeded with revising the table as at 31 December 2022. The revised interest yields of the 10-year government bonds increased by 5%, represent 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 (additions are noted in bold):

   

 

31/12/2022

(%)

NID Reference Interest Rate 2023

(%)

Abu Dhabi

4,224

9,224

Albania (EUR€)

6,247

11,247

Albania

7,480

12,48-

Argentina

6,447

11,447

Armenia

11,98

16,98

Australia

4,05

9,05

Austria

3,17

8,17

Azerbaijan

5,727

10,727

Bahrein (US$)

4,811

9,811

Belgium

3,171

8,171

Bermuda(US$)

5,043

10,043

Bosnia and Herzegobina*

4,399

9,399

British Virgin Islands

N/A

N/A

Bulgaria

5,516

10,516

Canada

3,298

8,298

Cayman Islands

N/A

N/A

Chile

5,266

10,266

Chile(EUR€)

3,889

8,889

Chile(US$)

5,210

10,210

China

2,833

7,833

Colombia

13,064

18,064

Costa Rica

9,667

14,667

Croatia

3,894

8,894

Cyprus

4,399

9,399

Czech Republic

5,015

10,015

Denmark

2,785

7,785

Dubai(EUR€)

N/A

N/A

Dubai (US$)

4,377

9,377

Egypt

19,348

24,348

Egypt(US$)

12,349

17,349

Estonia

3,637

8,637

Finland

3,117

8,117

France

3,106

8,106

Georgia

9,046

14,046

Germany

2,542

7,542

Ghana

39,930

44.930

Ghana (US$)

25,868

30,868

Guernsey

N/A

N/A

Greece

4,466

9,466

Hong Kong

3,677

8,677

Hungary

9,051

14,051

India

7,331

12,331

Iraq*

4,399

9,399

Ireland

3,076

8,076

Isle of Man

4,650

9,65

Indonesia

7,008

12,008

Indonesia(US$)

4,977

9,977

Indonesia (EUR€)

4,379

9,379

Israel

3,580

8,580

Israel(US$)

4,650

9,650

Italy

4,560

9,560

Ivory Coast

N/A

N/A

Jamaica

6,436

11,436

Japan

0,520

5,520

Jordan(US$)

7,930

12,930

Kazakhstan (EUR€)

4,276

9,276

Kazakhstan (US$)

4,555

9,555

Kenya

13,880

18,880

Kuwait*

4,399

9,399

Latvia

3,688

8,688

Lebanon

N/A

N/A

Lithuania

3,660

8,660

Luxembourg

3,075

8,075

Malaysia

4,126

9,126

Malta (EUR€)

3,830

8,830

Mexico

9,022

14,022

Morocco

3,947

8,947

Mauritius

5,880

10,880

Moldova*

4,399

9,399

Netherlands

2,906

7,906

New Zealand

4,472

9,472

Nigeria

13,437

18,437

Nigeria(EUR€)

N/A

N/A

North Macedonia  -  Skopje (EUR€)

7,940

12,940

Norway

3,192

8,192

Oman (US$)

6,166

11,166

Poland

6,846

11,846

Panama

5,754

10,754

Pakistan

13,642

18,642

Pakistan (US$)

27,224

32,224

Portugal

3,579

8,579

Qatar (US$)

4,514

9,514

Romania

8,282

13,282

Russia

11,230

16,230

Russia (US$)

N/A

N/A

Saudi Arabia

3,135

8,135

Serbia

7,036

12,036

Singapore

3,102

8,102

Slovakia

3,697

8,697

Slovenia

3,781

8,781

South Africa

10,788

15,788

Spain

3,649

8,649

Sweden

2,340

7,340

Switzerland

1,601

6,601

Taiwan

1,3249

6,3249

Tunisia

9,702

14,702

Turkey

9,600

14,600

Turkey (US$)

8,922

13,922

Turkey (EUR€)

7,585

12,585

U.S.A

3,877

8,877

Ukraine

N/A

N/A

Ukraine (EUR€)

32,023

37,023

Ukraine (US$)

34,410

39,410

United Arab Emirates

N/A

N/A

United Kingdom

3,665

8,665

Uruguay

7,090

12,090

Uruguay (US$)

4,030

9,030

Vietnam

4,784

9,784

*Cyprus rate used as per the CTD’s revised announcement

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

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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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