The Cyprus Tax Department (CTD) announced the interest yields of the 10-year government bonds for Cyprus, Czech Republic, Germany, India, Latvia, Poland, Romania, Russia, Ukraine, United Arab Emirates and United Kingdom as at 31 December 2016 which increased by 3%, represents their “reference rate” for the purposes of granting tax allowance on new capital as per article 9B of the Income Tax Law N.118 (I)/2002, as amended.

By way of background, the NID reference rate constitutes the interest rate of the 10-year government bond yield of the country in which the new equity is invested or of the Republic of Cyprus (as at 31st December of the previous tax year), whichever is the highest, increased by 3%. 

NID reference rates (i.e. the interest yield of the 10-year government bonds plus 3%) are as follows:

*For equity invested in the Czech Republic, Germany, Latvia, U.A.E and the U.K., the Cyprus NID Reference rate is used as the minimum.