Cyprus 2019 NID Rate
The Cyprus Department of Taxation has published the rates applicable for the 10 year government rate of each state, which once increased by 3%, constitutes the reference rate for the purposes of the Cyprus Notional Interest Deduction (NID) for the year ended 2019.
Cyprus 2019 NID Rate in practice means that the maximum allowable deduction shall be equal to the reference rate of the jurisdiction of the asset.
Referring back to the initial publication on the Cyprus Notional Interest Deduction (NID) the calculation would be as follows when considering the Cyprus 2019 NID Rate:
| # | NID Calculation | Asset 1 €m | Asset 2 €m | Asset 3 €m | Total €m |
| 1 | New Equity | 50 | 50 | 50 | 150 |
| 2 | NID [New Equity x reference Rate] | 4.7 | 6 | 4.6 | 15.3 |
| 3 | Taxable profit after deduction direct and apportioned indirect expenditure | 10 | 5 | 12 | 27 |
| 4 | NID Cap (80% of the taxable profit [80% x (#3)] | 8 | 4 | 9.6 | 21.6 |
| 5 | Deductible NID for each asset [lower of (2) and (4)] | 4.7 | 4 | 4.6 | 20.2 |
| 6 | Taxable profit [(#3)-(#5)] | 6.8 |
The scenario above takes into account the Cyprus 2019 NID Rates. A hypothetical investment into India, South Africa and Russia and a varied rate of return per investment.
Cyprus 2019 NID Rates
| State | 31/12/2019 | 31/12/2018 | 31/12/2017 | 31/12/2016 | 31/12/2015 | 31/12/2014 |
| Abu Dhabi | 2.514 | 2.302 | ||||
| Dubai ($US) | 3.160 | 4.722 | 4.402 | |||
| Isle of Man | 1.712 | 2.305 | ||||
| Taiwan | 0.670 | |||||
| Egypt | 13.518 | 17.990 | ||||
| Egypt($US) | 6.382 | 8.271 | ||||
| Argentina | 10.253 | 5.669 | ||||
| Armenia | 8.064 | 6.385 | 9.251 | |||
| Austria | 0.016 | 0.484 | 0.563 | |||
| Belgium | 0.086 | 0.768 | ||||
| Bulgaria | 0.257 | 0.966 | 0.750 | |||
| France | 0.115 | 0.705 | 0.780 | |||
| Germany | -0.210 | 0.284 | 0.423 | 0.204 | 0.568 | 0.540 |
| Switzerland | -.454 | 0.197 | ||||
| Greece | 1.431 | 4.346 | 4.073 | 8.361 | 9.639 | |
| USA | 1.919 | 2.685 | 2.406 | |||
| UK | 0.817 | 1.275 | 1.188 | 1.326 | ||
| India | 6.557 | 7.261 | 7.571 | 6.878 | 7.7758 | 7.860 |
| Ireland | 0.120 | 1.166 | 0.811 | |||
| Spain | 0.463 | 1.134 | 1.558 | |||
| Israel | 0.960 | 2.320 | ||||
| Israel ($US) | 2.520 | 3.900 | ||||
| Italy | 1.404 | 2.739 | 2.005 | 1.930 | 1.847 | |
| Kazakhstan ($US) | 2.566 | 4.232 | 4.204 | 5.311 | ||
| Kazakhstan ( € ) | 0.966 | 2.463 | ||||
| Canada | 1.699 | 1.965 | 2.079 | |||
| Kenya | 12.180 | 9.350 | ||||
| China | 3.130 | 3.261 | 4.268 | |||
| Croatia | 0.621 | 2.415 | 2.453 | |||
| Cyprus | 0.536 | 2.302 | 1.881 | 3.489 | 3.685 | 5.037 |
| Latvia | 0.136 | 1.029 | 0.715 | 0.894 | 1.104 | |
| Belarus ($US) | 5.350 | 7.226 | 5.946 | |||
| Lithuania | 0.169 | |||||
| Luxembourg | -0.087 | 0.522 | 0.637 | |||
| Maroco | 2.420 | |||||
| Norway | 1.540 | 1.754 | 1.579 | |||
| South Africa | 9.018 | 9.206 | 8.780 | |||
| The Netherlands | -0.060 | 0.383 | 0.501 | |||
| Hungary | 2.017 | 2.971 | 2.031 | |||
| Ukraine ($US) | 6.504 | 10.780 | 7.222 | 8.705 | 9.622 | |
| Poland | 2.109 | 2.812 | 3.385 | 3.627 | 2.937 | |
| Romania | 4.398 | 4.811 | 4.314 | 3.748 | 3.703 | 3.570 |
| Russia | 6.270 | 8.720 | 7.590 | 8.380 | 9.570 | 13.730 |
| Russia ($US) | 2.605 | 5.020 | 3.822 | 4.409 | 6.600 | 6.580 |
| Saudi Arabia | 2.778 | 4.722 | ||||
| Serbia | 2.778 | 4.722 | 5.968 | |||
| Singapore | 1.730 | 0.789 | 0.815 | |||
| Slovakia | 0.192 | 0.789 | 0.815 | |||
| Slovenia | 0.267 | 1.166 | 0.843 | |||
| Sweden | 0.145 | 0.457 | 0.540 | |||
| Czech Republic | 1.569 | 1.884 | 1.650 | 0.414 | 0.499 | |
| Finalnd | 0.043 | |||||
| Honk Kong | 1.699 | 1.946 | 1.754 |
The reference rates above mentioned are extracted from the Cyprus Tax Departments publication. You may access them by following the above link.
Harris Sharpe
Author - Photographer
For many years he has worked and devoted his skills and efforts towards building a successful career as a leading executive. From humble beginnings, his aim has always been to yield results; with a keen focus to attention to detail and client satisfaction. His experience has always been varied and not specific, at times he preferred it. With that in mind, he has dealt with CySEC on licensing and ongoing regulation, international private equity and credit fund managers, NASDAQ and NYSE listed companies occasional millionaires as well as self-made millionaires. His passion though is difficult transaction work organizing and deploying people for a common goal. Harris enjoys reading and studying the Cyprus law and sharing that information on this website.
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