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2018-12-13

【US Tax】

US: Draft regulations restrict business tax relief on interest costs

The Internal Revenue Service has issued proposed regulations capping the interest expense deduction for businesses whose turnover exceeds USD25 million. The measure, introduced by the Tax Cuts and Jobs Act 2017, restricts the deduction for business interest expense to the company's total business interest income, 30 percent of adjusted taxable income, and floor plan financing interest. Real estate and farming businesses can elect to be exempt.

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