Will the interest General Interest Deduction Limitation Rule apply to Tax Groups?
A Tax Group’s deductible Net Interest Expenditure will be limited where the Net Interest Expenditure is greater than AED 12 million or the greater of 30% of the Tax Group’s adjusted earnings before Interest, taxes, depreciation and amortisation (EBITDA) in the Tax Period or the de minimis threshold of AED 12 million.
Where members of a Tax Group include Banks or Insurance Providers, their Interest income and expenditure should be excluded in full when calculating the Tax Group’s EBITDA for the purposes of the General Interest Deduction Limitation Rule
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