View source for Fixed-ratio method

''Tax''

A proposal under the OECD's [[Base erosion and profit shifting]] (BEPS) initiative.

The fixed-ratio method is a proposed methodology to limit [[tax relief]] for interest and amounts economically equivalent to interest.

It would limit the amounts eligible for relief to a percentage of a taxpayer's [[earnings]].


An alternative proposed methodology is a worldwide interest cap.


==See also==

* [[Common Consolidated Corporate Tax Base]]
* [[Corporation Tax]]
* [[Diverted profits tax]]
* [[Worldwide interest cap]]
* [[Tax avoidance]]
* [[Transfer pricing]]
* [[Double taxation]]