Thin capitalization rules determine how to manage debt between entities at headquarters and across borders. The rules are designed to ensure that entities do not have the claim of deduction of interest on debt borrowed locally, which then provided to entities outside of borders.
While these rules try to address very specific issues that can often have consequences for normal commercial operation of a company with operations across borders, you need a knowledge of the rules and how to avoid paying more taxes than necessary . It is also necessary to ensure that the entity is not exposed to unnecessary risk.
Besides having a broad knowledge of local legislation, we are part of Morison International. Morison International is headquartered in London, England, is an association of independent professional experts in Legal advice -Tax, Finance and Accounting with a presence in over 60 countries around the world. We know who to contact to help you realize business in any country.