Suzanne Boers In 2004, the Netherlands adopted thin capitalisation rules for its national corporate income tax legislation. The Dutch thin cap rules state that interest is not deductible from corporate income if the company's average debt is three times higher than the average equity and this excess is more than €500,000 ($659,000). Furthermore, the amount of interest that is not deductible cannot be higher than the amount of interest paid to related entities, less the amount of interest received from related entities.
March 31 2007