Any form of monetary return that includes interest or such equivalents will be considered for the purpose of the General Interest Deduction Limitation Rule, regardless of the treatment under IFRS. These include: -
- Amounts incurred in connection with raising finance (Guarantee fee, Arrangement Fee, Commitment fee, and any other fee of similar nature).
- Interest components of derivative instruments such as forward contracts, futures contracts, options, interest rate and foreign exchange swap agreements, any financial derivative instrument used to hedge risks directly connected with raising finance.
- Equivalent Interest component on Islamic Financial Instruments
- The finance element of Financial and Non-Financial Lease payments
- Foreign exchange gains and losses accruing from interest.
- Capitalized Interest