Fixed ratio method: Difference between revisions
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==See also== | ==See also== | ||
* [[ | * [[Business in Europe: Framework for Income Taxation]] | ||
* [[Corporate Interest Restriction]] | * [[Corporate Interest Restriction]] | ||
* [[Corporation Tax]] | * [[Corporation Tax]] | ||
Latest revision as of 16:10, 21 February 2022
Tax - anti-avoidance.
The fixed ratio method is a mechanism to limit corporate tax relief for interest and amounts economically equivalent to interest.
It limits the amounts eligible for relief to a percentage of a taxpayer's profits.
Under the UK's Corporate Interest Restriction, with effect from April 2017:
- The fixed ratio for a large worldwide group is 30%
- The measure of profits is the group's aggregate tax-EBITDA
