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 |
9,560 |
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 |
4,965 |
New Zealand |
4,472 |
9,472 |
Nigeria |
13,437 |
17,607 |
Nigeria(EUR€) |
N/A |
N/A |
North Macedonia - Skopje (EUR€) |
7,940 |
12,940 |
Norway |
3,192 |
6,699 |
Oman (US$) |
6,166 |
11,166 |
Poland |
6,846 |
8,646 |
Panama |
5,754 |
10,754 |
Pakistan (US$) |
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 (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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.