Limitation rules for deduction of interest for tax purposes – in force from 1 January 2014


1 January 2014 the new limitation rules for deduction of interest in the Tax Act Section 6-41 came into force. 20 December 2013 the Ministry of Finance sent out a regulation regarding exceptions from the Tax Act Section 6-41 3rd paragraph, letter a, on hearing.

The regulation is expected to enter into force from 1 January 2014. However, the regulation will not prevent all real estate companies from being influenced by the limitation rules for deduction of interest in the Tax Act Section 6-41, and many real estate companies must therefore still consider adjustments to ensure a full deduction of interest costs for tax purposes. We will take a closer look at the main content of the rules, and which companies should make adjustments.

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