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 […]

Written By ACT Team

On January 21, 2019
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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.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

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 i[email protected].