Analysis of the thin capitalization rules and improvement proposal in light of Legislative Decree No. 1424

Abstract

This article is a non-experimental descriptive and explanatory research, which seeks to carry out a critical analysis of the new thin capitalization regulation established in Legislative Decree No. 1424. Likewise, the implementation of action 4 of the BEPS recommendations in Peru, and is compared with what is regulated in other countries in the region and in Spain. Through this analysis, it is proposed to review again what is regulated by Legislative Decree No. 1424 and implement action 4 of the BEPS Plan, but in a reasonable manner and in accordance with the particularities of the Peruvian economy. Finally, the present investigation shows that there are still gaps in what is regulated by Legislative Decree No. 1424, regarding the limit of financial expenses for indebtedness, which must be clarified by the legislator to determine which subjects are bound to the new limit of undercapitalization.