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