Malta Publishes Regulations Implementing EU Anti-Tax Avoidance Directive

Malta has published Legal Notice 411 of 2018 in the Official Gazette, which includes the European Union Anti-Tax Avoidance Directives Implementation Regulations, 2018. The regulations are summarized as follows:

Interest Deduction Limitation

The key points of the interest deduction limitation include:

• The deduction of interest expense is limited to 30% of EBITDA with a EUR 3 million safe harbor;
• Excess interest expense may be carried forward indefinitely and unused interest capacity may …