The interest limitation rule limits the amount of deductible interest expenses that may be allowed by a taxpayer against income derived from an economic activity. The concept of further interest deduction limitations has been introduced with the transposition of the EU Anti-Tax Avoidance Directive (ATAD 1) with the addition of the concept of Exceeding Borrowing Costs and limitations based on Earnings Before Tax Depreciation and Amortisation (EBITDA).

The seminar aims to provide participants with an overview of the principles and the practical experiences which have been gathered during the last 7 years consequent to the application of ATAD 1. A number of practical examples shall be reviewed with the aim of enhancing the discussion on the effects of such rules on the economic operators within the Maltese context. A review of the integration of the interest limitation rules within the wider Maltese legislative framework and their compatibility shall be presented.