SAT Would Limit Interest Deductions

Christian Kaye explains that the proposal would reduce the net interest deduction cap from 30 to 20 per cent, which would increase the taxable base and could put pressure on the liquidity of companies that rely on financing, particularly those with high levels of debt.

The specialist notes that, although the measures seek to combat simulated transactions and tax evasion schemes, their broad application could also affect legitimate operations.

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