Worldwide interest cap: Difference between revisions

Revision as of 06:14, 2 May 2018

Tax - anti-avoidance.

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

The worldwide interest cap is a mechanism to limit tax relief for interest and amounts economically equivalent to interest.

The UK implemented a restriction with effect from April 2017, under its Corporate Interest Restriction.

An alternative methodology is a fixed-ratio method.

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-''Tax''.
+''Tax - anti-avoidance''.
 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.
+The worldwide interest cap is a mechanism 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 UK implemented a restriction with effect from April 2017, under its Corporate Interest Restriction.
-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 methodology is a fixed-ratio method.
-An alternative proposed methodology is a fixed-ratio method.
 ==See also==
+* [[Base erosion and profit shifting]]
 * [[CbC reporting]]
 * [[Common Consolidated Corporate Tax Base]]
-* [[Corporation Tax]]
+* [[Corporate Interest Restriction]]
-* [[Diverted profits tax]]
 * [[Fixed-ratio method]]
 * [[Tax avoidance]]
+* [[Tax relief]]
 * [[Transfer pricing]]
-* [[Double taxation]]