On 13 May 2020, the tax authority published final guidelines regarding restrictions on interest deduction, including the amendments introduced by the Finance Law for 2019 to implement the EU Anti-Tax Avoidance Directive (ATAD). In accordance with the guide, the additional borrowing costs are deductible for the tax period during which they were incurred, but only up to 30% of the EBITDA and EUR 3 million safe harbor. The final guideline also permits a 75% deduction cost for stand-alone companies. These provisions apply to fiscal years beginning on or after 1 January 2019, with the exception of those relating to the special regime of net finance costs borne by independent companies that apply to fiscal years ending on or after December 31, 2019.
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