How it is calculated
Formula: non-deductible = finance cost × (debt − equity) ÷ debt × 10%.
Legal basis: Corporate Tax Law art. 11/1-i; Income Tax Law art. 41/1-11.
Non-deductible part of finance costs for companies whose borrowings exceed equity.
Formula: non-deductible = finance cost × (debt − equity) ÷ debt × 10%.
Legal basis: Corporate Tax Law art. 11/1-i; Income Tax Law art. 41/1-11.