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Cyprus: OECD FT Report - A Potential Solution to Excessive Debt Financing

Costas Savva 06 May 2021

Costas Savva and Demis Ioannou of Taxand Cyprus take a closer look at protective tax measures for excessive debt financing, and consider whether the new FT Report can be a solution for existing problems.

Costas Savva and Demis Ioannou of Taxand Cyprus take a closer look at protective tax measures for excessive debt financing, and consider whether the new FT Report can be a solution for existing problems.

 

Excessive debt financing has always been on the eye of tax authorities in order to protect their tax base. This is because multinational enterprises (MNEs) have the option to finance their activities with debt or equity each being subject to different tax treatment, and as a result, from a tax perspective, debt financing is considered more advantageous as opposed to equity.

 

Continue reading: Cyprus: OECD FT Report – A Potential Solution to Excessive Debt Financing

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Article tags

Cyprus | OECD | Transfer Pricing

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