Australian Debt-Deduction Rules Get Royal Assent to Become Law

New Australian rules that limit deductions on multinationals’ interest payments received royal assent, the last step for them to become law, the Australian Taxation Office said Monday.

The thin-capitalization rules that restrict interest deductions were passed by both houses of Australia’s Parliament last month as part of their tax-integrity bill.

Australia is part of the British Commonwealth, and royal assent is formal acceptance of a law by Australia’s governor-general, the king’s representative in the country.

• Stakeholders indicated the issues from the thin-capitalization rules on which they most want to see guidance are the application of the third-party debt test, ...