The Cyprus Tax Department has recently published the reference rates to be used in determining the notional interest deduction for new equity investments. The notional interest deduction applies for tax years beginning on or after 1 January 2015. The deduction is equal to 3% plus a reference rate equal to the higher of the Cyprus 10-year government bond yield or equivalent bond yield of the country in which the assets funded by the new equity are utilized. The reference rates are determined as of 31 December of the year preceding the tax year.