Worldwide interest cap: Difference between revisions
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imported>Doug Williamson (Punctuation.) |
imported>Doug Williamson (Link with CBC reporting page.) |
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==See also== | ==See also== | ||
* [[CbC reporting]] | |||
* [[Common Consolidated Corporate Tax Base]] | * [[Common Consolidated Corporate Tax Base]] | ||
* [[Corporation Tax]] | * [[Corporation Tax]] |
Revision as of 14:23, 14 May 2017
Tax.
A proposal under the OECD's Base erosion and profit shifting (BEPS) initiative.
The worldwide interest cap method is a proposed methodology to limit tax relief for interest and amounts economically equivalent to interest.
It would limit the total amounts eligible for relief to a cap equal to the total of a taxpayer group's net third party interest expense.
The total cap would then be allocated by territory through an appropriate allocation key, for example territory profits as a proportion of total group profits.
An alternative proposed methodology is a fixed-ratio method.