November 23 (SeeNews) - Net interest costs exceeding 30% of a company's earnings before interest, tax, depreciation and amortization (EBITDA) will not be treated as tax-deductible under a change to revenue tax law now before Albania's parliament.
This cap will not apply to banks, non-banking financial institutions providing loans, insurance and leasing companies, according to the draft published on the parliament's website.
Currently, the Albanian law on taxation of revenues does not recognise as tax-deductible interest that exceeds the average annual lending interest charged by banks, according to data from the country's central bank.
Existing legislation also does not accept as tax-deductible interest costs which exceed four times a company's capital.