European Commission: Proposal for a Directive on a debt-equity bias reduction allowance

On 11 May 2022, the European Commission published a Proposal for a Council Directive on laying down rules on a debt-equity bias reduction allowance and on limiting the deductibility of interest for corporate income tax purposes. According to the Proposal, taxpayers subject to corporate income tax in one or more Member States will, under certain conditions, be able to deduct a notional interest on increases in equity.

Austrian Taxand member firm Leitner Leitner provides an analysis of the proposal which you can read here.