Cyprus Notional Interest Deduction (NID) rates for 2021
The Cyprus Tax office announced the 10-year government bond yield rates as at 31/12/2020 for a number of countries. These rates increased by 5% (the reference rate) can be used for calculating the notional interest deduction on new equity introduced in the business (01/01/2015 onwards). The choice of country depends on where the new equity has been invested. The NID is restricted to 80% of taxable profits generated by the application of the new equity.
The rates below apply for estimating NID for the year ended 31 December 2021.
| A/A | Country | 31/12/2020 | NID Reference Interest Rate 2021 |
| 1 | Abu Dhabi | 1,681 | 6,681 |
| 2 | Albania | N/A | N/A |
| 3 | Argentina | 3,269 | 8,269 |
| 4 | Armenia | 7,485 | 12,485 |
| 5 | Australia | 1,005 | 6,005 |
| 6 | Austria | -0,433 | 4,567 |
| 7 | Azerbaijan | N/A | N/A |
| 8 | Belarus(US$) | 6,075 | 11,075 |
| 9 | Belgium | -0,388 | 4,612 |
| 10 | Bermuda(US$) | 1,783 | 6,783 |
| 11 | British Virgin Islands | N/A | N/A |
| 12 | Bulgaria | 0,19 | 5,19 |
| 13 | Canada | 0,675 | 5,674 |
| 14 | Cayman Islands | N/A | N/A |
| 15 | China | 3,18 | 8,18 |
| 16 | Costa Rica | 9,627 | 14,627 |
| 17 | Croatia | 0,548 | 5,548 |
| 18 | Cyprus | 0,136 | 5,136 |
| 19 | Czech Republic | 1,252 | 6,252 |
| 20 | Denmark | -0,459 | 4,541 |
| 21 | Dubai(€) | N/A | N/A |
| 22 | Dubai (US$) | 2,594 | 7,594 |
| 23 | Egypt | 14,006 | 19,006 |
| 24 | Egypt(US$) | 6,678 | 11,678 |
| 25 | Estonia | -0,211 | 4,789 |
| 26 | Finland | -0,425 | 4,575 |
| 27 | France | -0,343 | 4,567 |
| 28 | Germany | -0,388 | 4,612 |
| 29 | Guernsey | N/A | N/A |
| 30 | Greece | 0,19 | 5,19 |
| 31 | Hong Kong | 0,541 | 5,541 |
| 32 | Hungary | 2,135 | 7,135 |
| 33 | India | 5,865 | 10,865 |
| 34 | Ireland | -0,318 | 4,682 |
| 35 | Isle of Man | 0,985 | 5,985 |
| 36 | Israel | 0,77 | 5,77 |
| 37 | Israel(US$) | 1,551 | 6,551 |
| 38 | Italy | 0,541 | 5,541 |
| 39 | Ivory Coast | N/A | N/A |
| 40 | Jordan(US$) | 4,48 | 9,48 |
| 41 | Kazakhstan (€) | 0,653 | 5,653 |
| 42 | Kazakhstan (US$) | 4,03 | 9,03 |
| 43 | Kenya | 11,977 | 16,977 |
| 44 | Latvia | -0,18 | 4,82 |
| 45 | Lebanon | N/A | N/A |
| 46 | Lithuania | -0,197 | 4,803 |
| 47 | Luxembourg | -0,415 | 4,585 |
| 48 | Morocco | 2,403 | 7,403 |
| 49 | Mauritius | 1,58 | 6,58 |
| 50 | Netherlands | -0,49 | 4,51 |
| 51 | Nigeria | 7,261 | 12,261 |
| 52 | Nigeria(€) | N/A | N/A |
| 53 | Norway | 0,944 | 5,944 |
| 54 | Poland | 1,229 | 6,229 |
| 55 | Portugal | 0,026 | 5,026 |
| 56 | Romania | 2,959 | 7,959 |
| 57 | Russia | 5,91 | 10,91 |
| 58 | Russia (US$) | 1,546 | 6,546 |
| 59 | Saudi Arabia | 2,399 | 7,399 |
| 60 | Serbia | 3,48 | 8,48 |
| 61 | Singapore | 0,834 | 5,834 |
| 62 | Slovakia | -0,52 | 4,48 |
| 63 | Slovenia | -0,187 | 4,813 |
| 64 | South Africa | 8,736 | 13,736 |
| 65 | Spain | 0,043 | 5,043 |
| 66 | Sweden | 0,022 | 5,022 |
| 67 | Switzerland | -0,523 | 4,477 |
| 68 | Taiwan | 0,3 | 5,3 |
| 69 | U.S.A | 0,916 | 5,916 |
| 70 | Ukraine (€) | N/A | N/A |
| 71 | Ukraine (US$) | 6,052 | 11,052 |
| 72 | United Arab Emirates | N/A | N/A |
| 73 | United Kingdom | 0,192 | 5,192 |
| 74 | Vietnam | 2,202 | 7,202 |
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.
Our tax specialists are at your disposal should you require any further information or clarifications and for further advice on the subject matter.
