Worldwide interest cap

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.

See also

• Base erosion and profit shifting
• CbC reporting
• Common Consolidated Corporate Tax Base
• Corporate Interest Restriction
• Fixed-ratio method
• Tax avoidance
• Tax relief
• Transfer pricing