The Cyprus Tax Department (CTD) has released the interest yields of 10-year government bonds for various countries, as of 31 December 2022. These yields, increased by 5%, serve as the “reference rate” for granting tax allowances on new capital in accordance with Article 9B of the Income Tax Law N.118(I)/2002, as amended.
To provide context, the NID reference rate is determined by taking the interest rate of the 10-year government bond yield of the country where the new equity is invested (as at 31 December of the preceding tax year) and adding 5%.
NID reference rates are as follows:
| 31/12/2022 % | NID Reference Interest Rate 2023 % | |
| Abu Dhabi | 4,224 | 9,224 |
| Albania | 6,247 | 11,247 |
| 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 |
| Belgium | 3,171 | 8,171 |
| Bermuda(US$) | 5,043 | 10,043 |
| British Virgin Islands | N/A | N/A |
| Bulgaria | 5,516 | 10,516 |
| Canada | 3,298 | 8,298 |
| Cayman Islands | N/A | N/A |
| Chile | 5,266 | 10,266 |
| Chile(€) | 3,889 | 8,889 |
| Chile(US$) | 5,210 | 10,210 |
| China | 2,833 | 7,833 |
| 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(€) | 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 |
| Germany | 2,542 | 7,542 |
| Ghana | 39,930 | 44.930 |
| Ghana (US$) | 25,868 | 30,868 |
| Guernsey | N/A | N/A |
| Greece | 4,466 | 9,466 |
| Hong Kong | 3,677 | 8,677 |
| Hungary | 9,051 | 14,051 |
| India | 7,331 | 12,331 |
| Ireland | 3,076 | 8,076 |
| Isle of Man | 4,65 | 9,65 |
| Israel | 3,580 | 8,580 |
| Israel(US$) | 4,650 | 9,560 |
| Italy | 4,560 | 9,560 |
| Ivory Coast | N/A | N/A |
| Jamaica | 6,436 | 11,436 |
| Jordan(US$) | 7,930 | 12,930 |
| Kazakhstan (€) | 4,276 | 9,276 |
| Kazakhstan (US$) | 4,555 | 9,555 |
| Kenya | 13,880 | 18,880 |
| Latvia | 3,688 | 8,688 |
| Lebanon | N/A | N/A |
| Lithuania | 3,660 | 8,660 |
| Luxembourg | 3,075 | 8,075 |
| Morocco | 3,947 | 8,947 |
| Mauritius | 5,880 | 10,880 |
| Netherlands | 2,906 | 4,965 |
| Nigeria | 13,437 | 17,607 |
| Nigeria(€) | N/A | N/A |
| Norway | 3,192 | 6,699 |
| Poland | 6,846 | 8,646 |
| Panama | 5,754 | 10,754 |
| Portugal | 3,579 | 8,579 |
| Romania | 8,282 | 13,282 |
| Russia | 11,230 | 16,230 |
| Russia (US$) | N/A | N/A |
| Saudi Arabia | 3,135 | 8,135 |
| Serbia | 7,036 | 12,036 |
| Singapore | 3,102 | 8,102 |
| Slovakia | 3,697 | 8,697 |
| Slovenia | 3,781 | 8,781 |
| South Africa | 10,788 | 15,788 |
| Spain | 3,649 | 8,649 |
| Sweden | 2,340 | 7,340 |
| Switzerland | 1,601 | 6,601 |
| Taiwan | 1,3249 | 6,3249 |
| U.S.A | 3,877 | 8,877 |
| Ukraine | N/A | N/A |
| Ukraine (€) | 32,023 | 37,023 |
| Ukraine (US$) | 34,410 | 39,410 |
| United Arab Emirates | N/A | N/A |
| United Kingdom | 3,665 | 8,665 |
| Vietnam | 4,784 | 9,784 |
For countries not included in the announcement, taxpayers can request the CTD to determine the appropriate NID reference rate. This request should include the interest yields of the 10-year government bonds for the relevant countries, as identified through the Bloomberg Index. If such data is unavailable, taxpayers may submit their estimation of the applicable rate for consideration.
George Kaimakliotis & Co Ltd is here to assist you in navigating the complexities of determining the applicable NID Reference Rates. Our experienced team can handle the preparation and submission of tailored ruling requests to the CTD, ensuring a smooth and efficient process.
If you require further information or personalized guidance, please don’t hesitate to reach out to us. We are ready to support you every step of the way.
