""

As we did write in our post regarding Cyprus tax, corporate entities, under certain circumstances, can deduct a hypothetical interest on the paid-up capital of the company. This deduction lowers the taxable profit of the company. The interest is calculated either on the yield of the 10-year government bond of Cyprus or on the similar bond of the country where the money is invested in (whichever is higher), plus 3%. The interest rates to be used are of December 31 of the preceding year.

Here is a list of the interest rates bo be used in 2019:

  10-year bond
rate
Reference rate
for 2019
Armenia 6.385% 9.385%
Austria 0.484% 5.302%
Belarus (USD) 7.226% 10.226%
British Virgin
Islands
N/A 5.302%
Bulgaria 0.966% 5.302%
Canada 1.965% 5.302%
China 3.261% 6.261%
Croatia 2.415% 5.415%
Cyprus >2.302% 5.302%
Czech Republic 1.884% 5.302%
France 0.705% 5.302%
Germany 0.284% 5.302%
Greece 4.346% 7.346%
Hong Kong 1.946% 5.302%
Hungary 2.971% 5.971%
India 7.261% 10.261%
Ireland 1.166% 5.302%
Italy 2.739% 5.739%
Kazakhstan N/A 5.302%
Latvia 1.029% 5.302%
Luxembourg 0.522% 5.302%
Mauritius 5.38% 8.38%
Netherlands 0.383% 5.302%
Norway 1.754% 5.302%
Poland 2.812% 5.812%
Romania 4.811% 7.811%
Russia 8.72% 11.72%
Russia (USD) 5.02% 8.02%
Serbia 4.722% 7.722%
Slovakia 0.789% 5.302%
Slovenia 1.166% 5.302%
South Africa 9.206% 12.206%
Spain 1.413% 5.302%
Sweden 0.457% 5.302%
Switzerland -0.197% 5.302%
Ukraine (USD) 10.78% 13.78%
United Kingdom 1.275% 5.302%
United States 2.685% 5.685%
"\r\n