The Resource Italy sets the barrier to deduction of financing costs at 30 per cent of EBITDA

Italy sets the barrier to deduction of financing costs at 30 per cent of EBITDA

Label
Italy sets the barrier to deduction of financing costs at 30 per cent of EBITDA
Title
Italy sets the barrier to deduction of financing costs at 30 per cent of EBITDA
Creator
Subject
Language
eng
Summary
At the end of 2007, Italy opened to a German-inspired regime of tax deduction and set the barrier to annual deduction of financing costs at 30% of (adjusted) EBITDA. The new system, the author states, mirrors the two main goals of the 2008 Budget Law: reduction of the corporate tax rate, concerning also small and medium sized companies and loans undertaken by independent parties, and simplifying and rationalizing the tax system. A as positive feature of the new regime, he mentions that it rewards business production: the higher the company's EBITDA, the higher is the limit to deduction of financing costs, regardless of the relationship between the parties involved in the loan and irrespective of the lender's residence
Citation source
In: Intertax. - Alphen aan den Rijn. - Vol. 36 (2008),
http://library.link/vocab/creatorName
  • Galeano, G.A
  • Rhode, A.M
Geographic coverage
  • Europe
  • European Union
Language note
English
http://library.link/vocab/subjectName
  • financing
  • interest deduction
  • EBITDA
  • tax reform
Label
Italy sets the barrier to deduction of financing costs at 30 per cent of EBITDA
Instantiates
Publication
Label
Italy sets the barrier to deduction of financing costs at 30 per cent of EBITDA
Publication

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