Cyprus 2019 NID Rate

by | Feb 18, 2020 | Cyprus Tax

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 CalculationAsset 1 €mAsset 2 €mAsset 3 €mTotal €m
1New Equity505050150
2NID [New Equity x reference Rate]4.764.615.3
3Taxable profit after deduction direct and apportioned indirect expenditure1051227
4NID Cap (80% of the taxable profit [80% x (#3)]849.621.6
5Deductible NID for each asset [lower of (2) and (4)]4.744.620.2
6Taxable 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

State31/12/201931/12/201831/12/201731/12/201631/12/201531/12/2014
Abu Dhabi2.5142.302
Dubai ($US)3.1604.7224.402
Isle of Man1.7122.305
Taiwan0.670
Egypt13.51817.990
Egypt($US)6.3828.271
Argentina10.2535.669
Armenia8.0646.3859.251
Austria0.0160.4840.563
Belgium0.0860.768
Bulgaria0.2570.9660.750
France0.1150.7050.780
Germany-0.2100.2840.4230.2040.5680.540
Switzerland-.4540.197
Greece1.4314.3464.0738.3619.639
USA1.9192.6852.406
UK0.8171.2751.1881.326
India6.5577.2617.5716.8787.77587.860
Ireland0.1201.1660.811
Spain0.4631.1341.558
Israel0.9602.320
Israel ($US)2.5203.900
Italy1.4042.7392.0051.9301.847
Kazakhstan ($US)2.5664.2324.2045.311
Kazakhstan ( )0.9662.463
Canada1.6991.9652.079
Kenya12.1809.350
China3.1303.2614.268
Croatia0.6212.4152.453
Cyprus0.5362.3021.8813.4893.6855.037
Latvia0.1361.0290.7150.8941.104
Belarus ($US)5.3507.2265.946
Lithuania0.169
Luxembourg-0.0870.5220.637
Maroco2.420
Norway1.5401.7541.579
South Africa9.0189.2068.780
The Netherlands-0.0600.3830.501
Hungary2.0172.9712.031
Ukraine ($US)6.50410.7807.2228.7059.622
Poland2.1092.8123.3853.6272.937
Romania4.3984.8114.3143.7483.7033.570
Russia6.2708.7207.5908.3809.57013.730
Russia ($US)2.6055.0203.8224.4096.6006.580
Saudi Arabia2.7784.722
Serbia2.7784.7225.968
Singapore1.7300.7890.815
Slovakia0.1920.7890.815
Slovenia0.2671.1660.843
Sweden0.1450.4570.540
Czech Republic1.5691.8841.6500.4140.499
Finalnd0.043
Honk Kong1.6991.9461.754

The reference rates above mentioned are extracted from the Cyprus Tax Departments publication. You may access them by following the above link.

Harris Sharpe

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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