Excerpt from the Business Profit Tax Act

11. (a) Without prejudice to the generality of Section 10(a), in computing a Person’s taxable profits for a tax year, a deduction shall not be allowed in respect of:

(5) interest if and to the extent that it is payable at a rate exceeding 6% (six percent) per annum except interest payable to a bank or financial institution approved by the MIRA; 

For the purpose of Section 11(a)(5) of the Business Profit Tax Act, banks and financial institutions approved by the MIRA refer to banks and financial institutions licensed by the central bank of the country of operation of that bank or financial institution.

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