Australia: Legislation on interest limitation rules receives Royal Assent
New interest limitation (thin capitalization) rules
New interest limitation (thin capitalization) rules
Legislation containing new interest limitation (thin capitalization) rules received Royal Assent on 8 April 2024.
The Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Act 2023 passed both houses of Parliament on 27 March 2024 (read TaxNewsFlash), after a series of amendments were made in the Senate (relating to the forestry industry and a post-implementation review).
The Act:
- Requires Australian public companies to disclose information about their subsidiaries in their annual financial reports by way of a “consolidated entity disclosure statement”
- Amends the thin capitalization rules to limit the amount of debt deductions that multinational entities can claim in an income year
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