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Zimbabwe Clarifies Application of Thin Capitalization Rules

|Approved Changes|Zimbabwe
Zimbabwe

As part of the 2019 Mid-Year Budget Review, Zimbabwe's Ministry of Finance has clarified the application of the country's thin capitalization rules. The rules generally provide that the deduction of interest expense is restricted where a 3:1 debt-equity ratio is exceeded. The clarification provides that the restriction does not apply in relation to interest expense on debt with domestic financi…

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