The introduction of a new interest rate ceiling threatens to bring about a tightening of the rules on loan relationships between internationally affiliated companies. One example would be a German subsidiary that receives an intra-group loan from a foreign parent company. Such interest expenses are generally not to be deductible to the extent they are based on an interest rate exceeding the maximum rate. The maximum rate is the base interest rate under § 247 BGB, increased by two percentage points.
However, it is also possible to demonstrate that an unrelated third party would only have granted the loan at a correspondingly higher interest rate. In addition, the rule is not to apply if the lender maintains an established commercial business operation abroad. The interest rate ceiling is only to take effect one month after the date on which the base interest rate is adjusted.