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Thin-Cap Rules

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Response to OECD Consultation on BEPS 1.0 Base Erosion and Profit Shifting

Response to OECD Consultation on BEPS 1.0

The BEPS project’s 15 actions were decisive responses to real problems in cross-border taxation, offering real benefits but also real costs. A decade of implementation experience has revealed a critical side effect: sharply higher compliance costs for both tax administrations and the business community.

Thin-capitalization rules, Thin-cap rules in Europe

Thin-Cap Rules in Europe

To discourage a certain form of international debt shifting, many countries have implemented so-called thin-capitalization rules (thin-cap rules), which limit the amount of interest a multinational business can deduct for tax purposes.

4 min read