Fixed ratio method: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Typo correction.)
imported>Doug Williamson
(Update link.)
 
Line 12: Line 12:


==See also==
==See also==
* [[Common Consolidated Corporate Tax Base]]
* [[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


See also