Luxembourg Tax Authorities Issue Administrative Guidance On Application Of Interest Limitation Rules
By EsqSocial Corporation 09/04/21
On 8 January 2021, the Luxembourg Tax Authorities published a Circular clarifying the interest limitation rules introduced in Luxembourg legislation in 2018, which implemented the European Union Anti-Tax Avoidance Directive 2016/1164 (ATAD 1). As a reminder, this legislation provides a limitation on the deduction of net financial costs referred to as exceeding borrowing costs (EBC). These rules limit the deductibility of borrowing costs to 30% of taxable EBITDA (Earnings before Interest, Tax,...
By: Goodwin