The Ministry of Finance announced a new interest rate of 2.68% on loans between related parties for 2022 before the beginning of the tax period in which it is applied. This means that interest is calculated at the rate of 2.68% of the minimum required tax revenue for 2022 when a domestic company gives a loan to a foreign affiliate.
When determining interest expense on loans received from related parties, they recognize accrued interest up to the amount of the interest rate that would be realized between unrelated parties at the time of loan approval. Interest up to a maximum of 2.68% is recognized as a tax expense of the domestic taxpayer for 2022.
