Malta: Update on notional interest deduction | KPMG Global
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Malta: Update on notional interest deduction

Malta: Update on notional interest deduction

A notional interest deduction—a mechanism that aims to approximate the tax treatment of equity to that of debt—is available in Malta.


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The notional interest deduction, therefore, intends to provide for equivalent tax treatment of debt and equity financing, by allowing an additional deduction for the amount of return on equity financing. As presented in the 2017 budget speech, the notional interest deduction was introduced in October 2017 and enacted with an effective date from “year of assessment 2018" (i.e., financial year 2017).


Read more about the notional interest deduction in a 2017 report prepared by the KPMG member firm in Malta


For more information, contact a KPMG tax professional in Malta:

John Ellul Sullivan |

Michail Tegos |

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