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Major Changes to Thin Capitalisation Rules

January 1, 2025
Major Changes to Thin Capitalisation Rules

Major Changes to Thin Capitalisation Rules

Australia is shifting to an earnings-based approach for thin capitalisation. From 2025, multinationals must meet stricter transfer pricing requirements before evaluating their debt levels for thin cap purposes. These changes will impact all affected arrangements from 2025 onwards.

Source:

Treasury Thin Capitalisation Reforms

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