Cyprus Tax Department publishes the 10 year bond yield for Notional Interest Deduction (NID) purposes for 31st December 2016

The Cyprus tax authorities have announced the interest yield of the 10 year government bonds as at 31st December 2016 which increased by 3 % grants  tax allowance on new capital introduced into the Cyprus company.

                                                               

Counties were the funds are used 10 year bond yield NID  reference rate

Cyprus

 3.489%

6.489%

Russia

 8.38%

11.38%

Russia denominated in USD

 4.409%

7.409%
Ukraine 8.705%

11.705%

Germany

 0.204%

3.204%

India

 6.878%

9.878%

UK

 1.326%

4.326%

Poland

 3.627%

6.627%

Czech Republic

 0.414%

3.414%
Latvia 0.894%

3.894%

 

Notional interest payable deduction (NID) is allowed in the tax computation of Cyprus tax resident  Company as of 1st of January 2015. The NID is calculated on  new capital (share capital and share premium) introduced in the company as per the above published rates. The notional interest will be 3 percentage points above the 10 year Government bond yield of the country where the funds are employed.