Malta’s NID rules approved by the EU Code of Conduct Group
Malta’s Notional Interest Deduction (NID) Rules enable undertakings to apply a deduction of notional interest against chargeable income, which notional interest is determined by reference to the undertakings risk capital. The aim of such rules is to align the tax treatment of the cost of equity with the cost of debt.
A review of Malta’s rules was carried out by the Code of Conduct Group of the EU (Business Taxation). The review was carried out during 2018 and in November 2018, it has been concluded that Malta’s NID rules are considered as overall not harmful.
For further information, you may contact the firm’s tax and corporate services partner Stephen Balzan on [email protected].
Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria. For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected].
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