Contributing Firms:
DEBRA: addressing the tax-induced debt-equity financing bias
The EU’s Debt-Equity Bias Reduction Allowance Directive (DEBRA) will contain changes to the tax treatment of debt and equity financing, to address the disproportionate treatment between the two across many Member States. Deloitte’s Kathy Lai analyses the proposed changes, which will require a reassessment of a corporates’ optimal capital structure, she says.