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Free tool · Groups
Interest deduction limitation (ATAD)
Are your net borrowing costs fully deductible? Calculate the cap set by article 212 bis of the French Tax Code (CGI), which transposes the EU Anti-Tax Avoidance Directive (ATAD), then the amount to add back and the amounts you can carry forward.
2026 rates, used for illustration only.
Result
Net borrowing costs
Tax EBITDA
Deduction cap
To add back
This calculation is only an estimate. To apply it to your own accounts and group, tell me about your situation.
Assumptions and limits
- Under French tax rules, net borrowing costs are deductible up to the higher of these two amounts: €3m (pro rata to the length of the financial year) or 30% of tax EBITDA.
- Estimated tax EBITDA: taxable profit, plus net borrowing costs, depreciation and amortisation, and deductible impairment provisions.
- Unused interest capacity can be used over the next 5 financial years; disallowed borrowing costs can be carried forward with no time limit.
- Standalone entity: additional deduction of 75% of the disallowed costs.
- Not covered: thin capitalisation rules, the group escape clause, tax consolidation, capital gains or losses taxed at a reduced rate. Corporate income tax (IS) impact estimated at the standard rate of 25%.
Results are for guidance only and do not replace a professional review of your situation. Nothing you enter is stored or sent: all calculations run in your browser.
Going further
Interest deduction limitation, beyond the calculator.
Outsourced CFOThe cap, tracked at every year endTax EBITDA and the deduction cap calculated as part of the year-end close, with carried-forward interest and unused capacity tracked.Learn more Outsourced CFOProperty developmentCash flow by project, financing and project taxation, including the interest deduction limitation.Learn more