The parliament has passed legislation amending article 57(b) of the Income Tax Act No. 90/2003 on 1st June 2017. According to the previous article 57 (b) of the Income Tax Law No 90 /, which entered into force on 1 January 2017, the taxpayer’s deduction of interest on loans from related parties shall be limited to 30% of the taxpayer’s earnings before interest, taxes, depreciation and amortization (EBITDA), provided that none of the three exceptions provided for in Article 57 (b) (3) apply. The amending legislation 2003 of 1st June 2017 eliminates the exception (B) provided for in Article 57 (b) (3), by which the article now applies equally to all loans from related parties, irrespective of where the creditor is resident for tax purposes. The amendment shall enter into force on 1st January 2018.
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