{"id":7545,"date":"2023-08-21T11:52:39","date_gmt":"2023-08-21T11:52:39","guid":{"rendered":"https:\/\/axevera.com\/2023\/08\/21\/european-commission-proposes-debra\/"},"modified":"2025-07-01T09:49:59","modified_gmt":"2025-07-01T09:49:59","slug":"european-commission-proposes-debra","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2023\/08\/21\/european-commission-proposes-debra\/","title":{"rendered":"European Commission proposes DEBRA"},"content":{"rendered":"
The facility to help companies access finance and reduce the distortion of debt versus equity capital<\/strong><\/h6>\n

On 11 May 2022, the European Commission published a proposal for a Debt-Equity Bias Reduction Allowance (DEBRA). It will become effective on 1 January 2024. This measure will support companies by introducing an allowance that will accord to equity capital the same tax treatment as debt. Under the proposal, increases in a taxpayer’s equity from one tax year to the next will be deductible from its tax base, similar to debt.<\/strong>
\nCurrently, EU tax systems allow interest payments on debt to be deducted from the tax base for the calculation of corporate income tax. In contrast, costs related to equity financing are mostly non-deductible. For this reason, debt rather than equity capital is preferred for financing investments.<\/p>\n

To address this bias, a directive is being discussed in the EU that provides for the tax-deductibility of imputed interest on capital increases and a limit on the tax-deductibility of excess financing costs under certain conditions. These rules apply to all taxpayers subject to corporate tax in one or more Member States, with the exception of financial companies.
\nOther measures of the directive set specific conditions for increasing equity capital through contributions in kind and aim at the re-categorisation of old capital as new capital.<\/p>\n

The initiative of this directive is part of the ‘EU strategy on company taxation’, which aims to ensure a fair and efficient tax system throughout the Union. It also contributes to the union of markets and capital by making financing more accessible to European companies, promoting the integration of capital markets into a single market.
\nDEBRA was created to set out the long-term vision of creating a sustainable business environment, promoting productive investment, entrepreneurship and efficient taxation in general.
\nIt encourages long-term investment and, as a result, promotes the sustainable, digital transition of the union’s economy. It also helps for new technology investments, start-ups and SME growth.<\/strong><\/p>\n

Source: https:\/\/zpravy.aktualne.cz\/<\/a>;\u00a0https:\/\/www.ceskenoviny.cz\/<\/a> ;\u00a0https:\/\/www.novinky.cz\/<\/a>
\nSources of images: https:\/\/pixabay.com\/<\/a>; https:\/\/storyset.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The facility to help companies access finance and reduce the distortion of debt versus equity capital On 11 May 2022, the European Commission published a proposal for a Debt-Equity Bias…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[525,26],"tags":[],"yst_prominent_words":[],"class_list":["post-7545","post","type-post","status-publish","format-standard","category-en","category-news"],"_links":{"self":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/7545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/comments?post=7545"}],"version-history":[{"count":1,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/7545\/revisions"}],"predecessor-version":[{"id":14827,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/7545\/revisions\/14827"}],"wp:attachment":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media?parent=7545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/categories?post=7545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/tags?post=7545"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/yst_prominent_words?post=7545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}