| Abstract [eng] |
The New Interest Deduction Limitation Rule: Concept and Assessment This master's thesis presents the history of the EBITDA rule in Lithuania, which starts in the 15 steps BEPS Action Plan about the Organization for International Economic Cooperation and Development, and it is described more broadly in its 4th step "Limit the reduction of the base with interest and other financial payments.” This plan was one of the biggest incentives for the directive to emerge in the European Union in 2016. This was followed by the Directive passed on 12 July (1164), in which the EBITDA rule is further analyzed, but more at the EU level. The aforementioned documents are studied thoroughly in this work because Lithuania, as a member of international organizations, must adapt and follow the provisions of these extremely important documents. These analyses of the documents reveal not only the mandatory provisions of the EBITDA rule offered to the members of the organizations, but also alternative provisions that the members can implement to suit their country’s legal system. This work also pays great attention to the Lithuanian sources that are related to the EBITDA rule, it defines the application of the EBITDA rule and evaluates other important provisions and concepts. The author of this paper also presents alternatives that were valid before the emergence of the EBITDA rule, one of which is the thin capitalization rule. The broader capitalization rule discloses a broader assessment of the EBITDA rule. Also, in her work, the author uses the practice of Lithuanian and EU TT and the practical situations of the commentary of the Lithuanian Income tax law to present the description and assessment of the EBITDA rule in the best possible way. After analyzing all the sources used, the conclusions are presented at the end of the work. |
