Please note that an updated version of the NID Guidelines will be uploaded to the CfR website shortly. The update consists of a new paragraph ‘xi’ applicable from YA2020 which will read as follows:
 
“(xi) Accounting Periods other than 12 Months
 
To further approximate the neutrality between debt and equity financing, an adjustment shall be applied to the NID to remove distortive and disproportionate deductions in respect of accounting periods that are longer or shorter than 12 months. The NID in respect of the years of assessment to which such accounting periods refer shall be inflated or reduced by multiplying the deduction contemplated by Rule 4(1) of the Rules by the number of days in the accounting period and dividing the result by 365. This paragraph (xi) shall be applicable to the year of assessment 2020 and subsequent years of assessment.”