Specifications upon taxation with income tax

A consolidated group for financial accounting purposes is a group consisting of all entities that are fully included in the consolidated financial statements prepared in accordance with International Financial Reporting Standards or the financial reporting framework of a Member State of the European Union (subsection 4 of § 54² of the Income Tax Act).

If a resident company is a part of a consolidated group for financial accounting purposes, it can choose between two group exceptions when taxing surplus borrowing costs. In order to use the exceptions, the conditions set forth in subsections 8 and 9 of § 54² of the Income Tax Act must be met.