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France Issues Ruling on Deductibility of Interest Paid to a Related Company Benefiting from the Notional Interest Regime

|Approved Changes|France
France

The French tax authority has issued a ruling on the deductibility of interest paid to a related Belgian company benefiting from the notional interest regime. Under French interest deduction rules, the deduction of interest payments to a related company may be restricted if the interest income is not taxed to the recipient at a minimum level corresponding to at least one-fourth (25%) of the French corporate income tax. The question posed in the ruling is whether the deduction for notional int…

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