An upcoming legislative change in the lucrative interest regulation has been announced by the State Secretary of Finance. This proposed amendment is a response to a recent ruling by the Supreme Court and will be included in the Tax Plan 2024, retroactively applied to June 26, 2023.
In short, the proposed amendment stipulates that loans which do not qualify as informal capital, must also be taken into account when assessing a lucrative interest. We would like to alert our clients to this expected legislative change, which can impact existing and future positions as well as tax rulings and agreements concerning lucrative interest.
Please feel free to reach out to us for further information regarding the impact of this amendment on existing or future situations.