Limits to debt deductions for thinly-capitalised entities

Special rules limiting debt deductions apply to both foreign investments in Australia and Australian investments overseas. These special rules apply if a thinly-capitalised (or highly-geared) entity is involved. A thinly-capitalised entity is an entity whose assets are funded by a high level of debt and relatively little equity.

Further Information

For more information, refer to Thin capitalisation - what you need to know.

End of further information
    Last modified: 09 Aug 2012QC 18324