Despite COVID-19, the international tax environment continues to
transform.
Has your organization updated its method of operation to comply
with the new requirements?
The EU Anti-Tax Avoidance Directive ("ATAD") contains
five legally binding anti-abuse measures implemented by most Member
States against common forms of aggressive tax planning. Member
States that have applied such measures shall provide a minimum
level of protection against corporate tax avoidance throughout the
EU, whilst at the same time ensuring a fairer and more stable
environment for businesses.
1.Interest limitation
In order to discourage the artificial shifting of debt
arrangements designed to minimize taxes. "ATAD" requires
member states to implement measures limiting the tax deductibility
of interest on debt, using a fixed percentage.
