ARTICLE · 09 MARCH 2021

Cyprus Notional Interest Deduction (NID) Rates For 2021

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The Cyprus Tax office announced the 10-year government bond yield rates as at 31/12/2020 for a number of countries.

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Lefteris Androkli

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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

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