Article
Notional Interest Deduction Rebalances Equity and Borrowings
From January 1 2006 - and for book years ending on December 31 2006 or later - all Belgian companies will be able to benefit from a deduction for risk capital, also referred to as a notional interest deduction.
For tax purposes, every company will be treated as if it had borrowed its own funds at a yearly interest rate equal to that of the 10-year Belgian government bond. The notional interest thus computed will be deductible from the tax base.
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