April 10, 2012
Alex Feness, Penny Woolford and Liz Murphy
Toronto, International Corporate Tax
Montreal, International Corporate Tax Service Line Leader
Spain has enacted new legislation that restricts interest deductibility for Spanish corporations, effective April 1, 2012. Among other changes, the legislation includes a new earnings-stripping rule that restricts interest deductions to 30% of earnings before interest, taxes, depreciation and amortization (EBITDA). This article summarizes the highlights of the new legislation.