Australian Treasury releases Exposure Draft Bills on thin cap changes and tax transparency disclosure of information

Exposure Draft (ED) legislation is proposed to amend Australia’s thin capitalization rules to limit debt deductions of multinational enterprises (MNEs) to 30% of tax earnings before interest, taxes, depreciation, and amortization (EBITDA).

ED includes proposed amendments to remove deductions for interest expenses incurred to derive non-assessable income for certain foreign entity distributions.

Treasury also released ED legislation requiring listed and unlisted public companies to disclose informa…