Posts Tagged ‘thin capitalisation’

New law on Australian ‘thin cap’ rules

Thursday, September 25th, 2014

The new law in brief

An important Bill affecting foreign investors into Australia was passed by the Australian Parliament today, 25 September 2014, – the ‘Tax and Superannuation Laws Amendment (2014 Measures No. 4) Bill 2014’.

It affects two areas of taxation in Australia – tax deductibility of financing expenses in an international context, and the taxation of dividends in Australia received from abroad.

This note deals with the tax deductibility of financing expenses – the so-called ‘thin cap’ rules. (It does not deal with the thin cap rules applicable to financial entities and banks). (more…)