Fixed-ratio method

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Revision as of 20:23, 15 June 2015 by imported>Doug Williamson (Amend to 'profits'.)
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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 profits.


An alternative proposed methodology is a worldwide interest cap.


See also