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German Ministry of Finance proposes interest-rate limitation rule

|Tax Alerts, Information Reporting, Legis ...|Germany
Germany

  • On 14 July 2023, the German Ministry of Finance published the draft of the Growth Opportunities Act.
  • In part, the draft bill proposes an interest-rate limitation rule to restrict the deduction of interest expenses in business relationships between related parties in certain situations.
  • If no "escape clause" applies, interest expenses are not deductible to the extent that the agreed interest rate exc…

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