Belgium MOF Issues Circular on Interest Deduction Limitation Rules

Oct. 21, 2021, 5:00 AM

The Belgian Federal Public Service-Finance Oct. 5 issued Circular No. 2021/C/87, on interest deduction limitation rules under the EU anti-avoidance directive (ATAD). Topics covered include: 1) the application of the 30 percent interest deduction limit, based on earnings before interest, taxes, depreciation, and amortization (EBITDA) in an assessment year; 2) the additional borrowing threshold of up to 3 million euros (US$3.5 million) for deductions; 3) the carry-forward of additional borrowing costs; 4) excluded loans and companies under the rules; 5) grandfathering provisions regarding loans entered into before June 17, 2016; 6) the calculation of EBITDA; 7) an exemption for specified ...

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