A debt-equity bias reduction allowance and on limiting the deductibility of interest for corporate income tax purposes

This procedure aims to create a fairer tax system for companies by reducing the tax advantage of debt financing over equity financing. It proposes rules for a debt-equity bias reduction allowance and limits how much interest companies can deduct from their taxable income.

These changes will affect companies' financial strategies and tax planning. The goal is to encourage investment through equity and ensure a more level playing field for businesses operating within the EU.