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Inward investing entity (ADI)

There are 4 steps an inward investing entity (ADI) takes to calculate if they have met the thin capitalisation rules.

Step 1: Calculate the average equity capital

How to calculate the average equity capital if you're an inward investing entity (ADI).

Step 2: Calculate the safe harbour capital amount

How to calculate the safe harbour capital amount if you're an ADI inwards investing entity.

Step 3: Calculate the arm's length capital amount

How to calculate the arm's length capital amount if you're an inward investing entity (ADI).

Step 4: Calculate the debt deductions disallowed

How to calculate the debt deductions disallowed if you're an inward investing entity (ADI).

Worked example of calculations for an ADI inward investing entity

The steps an ADI inward investing entity takes to determine whether it will have debt deductions disallowed.

QC48171