On 16/06/2020 the amendments on the NID rules were published in the official gazette of the Republic of Cyprus. The major amendments are as follows:

  • From 1 January 2020 the annual NID rate is the 10-year government bond of the country that the funds are invested in the business of a company plus 5% instead of 3% (which applied up to 31/12/2019).
  • The use of the Cyprus rate as a minimum is abolished. Therefore, in the case of countries that have a lower rate than Cyprus then that lower rate should be used. The Cyprus rate should be used only (i) in case that the investment is performed in Cyprus and (ii) in case that the country that the investment was performed has not issued a government bond.

As a result of the above on the 2020 list of rates as issued by the Tax department should be read as follows:

A/A COUNTRY 10 year government bond rate for 2020 – as issued by Tax office NID reference rate +5%
1 Abu Dhabi 2,514 7,514
2 Argentina 10,253 15,253
3 Armenia 8,064 13,064
4 Austria 0,016 5,016
5 Belarus (US$) 5,350 10,350
6 Belgium 0,086 5,086
7 British Virgin Islands N/A 5,621
8 Bulgaria 0,257 5,257
9 Canada 1,699 6,699
10 Cayman Islands N/A 5,621
11 China 3,130 8,130
12 Croatia 0,621 5,621
13 Cyprus 0,536 5,536
14 Czech Republic 1,569 6,569
15 Dubai (€) N/A 5,621
16 Dubai (US$) 3,160 8,160
17 Egypt 13,518 18,518
18 Egypt (US$) 6,382 11,382
19 Finland 0,043 5,043
20 France 0,115 5,115
21 Germany -0,210 4,790
22 Greece 1,431 6,431
23 Hong Kong 1,699 6,699
24 Hungary 2,017 7,017
25 India 6,557 11,557
26 Ireland 0,120 5,120
27 Isle of Man 1,712 6,712
28 Israel 0,960 5,960
29 Israel (US$) 2,520 7,520
30 Italy 1,404 6,404
31 Ivory Coast N/A 5,621
32 Kazakhstan (€) 0,996 5,996
33 Kazakhstan (US$) 2,566 7,566
34 Kenya 12,180 17,180
35 Latvia 0,136 5,136
36 Lithuania 0,169 5,169
37 Luxembourg -0,087 4,913
38 Marocco 2,420 7,420
39 Mauritius 4,260 9,260
40 Netherlands -0,060 4,940
41 Nigeria 11,563 16,563
42 Nigeria (€) N/A 5,621
43 Norway 1,540 6,540
44 Poland 2,109 7,109
45 Romania 4,398 9,398
46 Russia 6,270 11,270
47 Russia (US$) 2,605 7,605
48 Saudi Arabia 2,839 7,839
49 Serbia 2,778 7,778
50 Singapore 1,730 6,730
51 Slovakia 0,192 5,192
52 Slovenia 0,267 5,267
53 South Africa 9,018 14,018
54 Spain 0,463 5,463
55 Sweden 0,145 5,145
56 Switzerland -0,454 4,546
57 Taiwan 0,670 5,670
58 U.S.A. 1,919 6,919
59 Ukraine (€) N/A 5,621
60 Ukraine (US$) 6,504 11,504
61 United Arab Emirates N/A 5,621
62 United Kingdom 0,817 5,817
63 Vietnam 3,459 8,459

In case of N/A the Cyprus rate applies.

The increase of the reference rate to 5% is expected to affect positively all Cyprus companies using NID for 2020 since all relevant rates are above 3,536% that was the minimum rate applied under previous provisions of the law. Therefore, companies should amend their provisional tax computations and tax payments for 2020 accordingly.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.