Consolidation of Joint Ventures not always required for the 30% EBITDA rule
As from assessment year 2020 (FY starting as from 1 January 2019) a 30% EBITDA rule limits the maximum amount of interest relief, whereby ‘exceeding borrowing costs’ are only tax deductible up to the higher of 30% of the tax-adjusted EBITDA or €3m. This de minimis rule should be calculated at Belgian group level. Based
COVID-19 #14 Impact of decreasing EBITDA on interest deductibility
You don’t need a crystal ball to predict that a lot of companies will be confronted with a lower EBITDA than projected. Especially for highly leveraged businesses, this may bring some additional challenges. Indeed, by transposing the interest limitation rules embedded in the EU Anti-Tax Avoidance Directive (‘ATAD I’) in national law, Belgian taxpayers may
