Thin capitalization rules
The thin capitalization rules was acknowledge in year 1992 and known as counter-measure for tax avoidance created by the taxpayers payment of interest on loans of premium capital. In this rule includes the interest that is prohibited from a company’s tax deductible expenses.
Earnings stripping rules
The earnings stripping rules was also made known in year 2012 along the aim of preventing tax avoidance by decreasing the deductibility of interest purchased or paid to related persons where it is unequal to income.