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Taiwan's Ministry of Finance Provides Guidance on Reduction of Interest Expense When Borrowing Funds and Lending to Others with Low or No Interest

15 October 2024

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Approved Changes

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Taiwan

Taiwan's Ministry of Finance has issued a notice explaining that when a company incurs interest expense on borrowed funds while also providing a low or no interest loan, the deductible interest expense must be reduced. --- If a company borrows funds and lends them to others without charging interest or charging low interest, the interest expense should be reduced. The National Taxation Bureau of the Northern Area (NTBNA), MOF, stated that, if a company borrows money to pay interest on the one hand, but does not charge interest on the loan money on the other hand, or the interest charged...