Malta’s Commissioner for Revenue has published an updated version of theNotional Interest Deduction (NID) Guidelines. The update concerns the NID for accounting periods other than 12 months, and includes the following:
To further approximate the neutrality between debt and equity financing, an adjustment shall be applied to the NID to remove distortive and disproportionate deductions in respect of accounting periods that are longer or shorter than 12 months. The NID in respect of the years of assessment to which such accounting periods refer shall be inflated or reduced by multiplying the deduction contemplated by Rule 4(1) of the Rules by the number of days in the accounting period and dividing the result by 365. This applies to the year of assessment 2020 and subsequent years of assessment.
Source: Orbitax https://bit.ly/2YyglSO