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Notional interest deduction rate for assessment year 2018: 0,237%

Since the Law of 17 June 2013 modified its calculation, the notional interest deduction rate for an assessment year (e.g. 2018) is calculated on the basis of the average return of the 10-year OLO in the months July, August and September of the penultimate year preceding the assessment year (e.g. 2016).

For assessment year 2018, the average return and the notional interest deduction rate is 0,237% (0,737% for SMEs). This rate is still subject to official confirmation. As a reminder, the rate for assessment year 2017 is 1,131% (1,631% for SMEs).

For companies (not SMEs) closing their financial year on 31 December, this implies that the notional interest deduction rate for financial year 2016 is 1,131% and for financial year 2017 is 0,237%.

As you know, the federal government is preparing a corporate tax reform which could have an impact on the regime of the notional interest deduction.


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Jos Goubert

Tax Knowledge Dept.

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