Interest barrier

(1) For the purposes of section 4h(1) of the Income Tax Act, distributed or deemed-distributed income of the investor originating from interest income under section 4h(3), third sentence of the Income Tax Act is to be treated as interest income. This does not apply to distributed income that is deemed capital amounts under section 35(6).
(2) The interest income to be applied is reduced by the following deduction amounts: 1. direct costs, 2. the general costs allocable to interest income under section 40, 3. interest expenses, and 4. negative capital income under section 20(1) no. 7 or (2), first sentence, no. 7 of the Income Tax Act.
(3) Where the deduction amounts exceed the interest income, the difference is to be carried forward to the following financial years of the special investment fund; this reduces the interest income of the following financial years.