The Cyprus Tax Department has announced the publication of the reference rates to be used in 2023 for determining the notional interest deduction (NID) for new equity investments. Under the rules, the NID rate is equal to the 10-year government bond yield of the country in which the assets funded by the new equity are utilized (the reference rate), increased by 5%. The reference rates for a particular year are determined based on the rates as at 31 December of the year preceding the tax year.

Click the following link for the reference rate table, which includes the rates for multiple countries for different years up to 31 December 2022. This includes the reference rate for Cyprus, which is 4.399%, as well as rates for several other countries/jurisdictions. Most of the rates are significantly higher than the previous year.