The Cyprus Tax Department published on 14 February 2018 an update on bond yield rates per country as at 31 December 2017 to be considered for the notional interest deduction to which equity injected in to Cyprus companies as from 1 January 2015 is entitled. The rates are as follows:
Country Rate (%)
Austria 0.563
Canada 2.079
China 4.268
Croatia 2.453
Cyprus 1.881
Czech Republic 1.650
France 0.780
Germany 0.423
Greece 4.073
Hungary 2.031
India 7.571
Ireland 0.811
Italy 2.005
Latvia 0.715
Luxembourg 0.637
Netherlands 0.501
Norway 1.579
Poland 3.385
Romania 4.314
Russia 7.590
Russia (USD) 3.822
Serbia 5.968
Slovakia 0.815
Slovenia 0.843
South Africa 8.780
Spain 1.558
Sweden 0.540
United Kingdom 1.188
United States 2.406
It is reminded that the reference interest rate is considered to be the higher of the 10-year government bond yield of Cyprus or of the country in which the assets financed by the new equity are utilized, plus 3%. The rate to be used is the one as at 31 December of the tax year preceding the tax year of assessment.
