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Taiwan Clarifies Deductibility of Interest Expense

|Approved Changes|Taiwan
Taiwan

On 30 January 2015, Taiwan's Ministry of Finance published a notice clarifying the treatment of interest expenses. According to the notice, interest expenses are only deductible when a loan is obtained for reasonable and necessary cases. In general, a reasonable and necessary case is when current funds are not sufficient to cover business operations. If a loan is not deemed necessary, the related interest expenditure will not be considered as a deductible expense or loss.

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