Debt equity bias reduction allowance (DEBRA)
- Stage
- Commission proposal, reached 12 Jul 2021
- Lead DG
- DG TAXUD
- Last activity
- 21 Oct 2025
Where it stands
Latest: Listed for withdrawal in the Commission work programme, 21 Oct 2025.
- 12 Jul 2021
- Inception impact assessment closed: Debt equity bias reduction allowance (DEBRA), 7 responses · Commission
- 7 Oct 2021
- Public consultation closed: Debt equity bias reduction allowance (DEBRA), 68 responses · Commission
- 29 Jul 2022
- Feedback on adopted proposal closed: Debt equity bias reduction allowance (DEBRA), 60 responses · Commission
- 21 Oct 2025
- Listed for withdrawal in the Commission work programme · Commission
Consultations on it
The Commission's Have Your Say consultations linked to this file. Where we publish the positions filed, the title opens them here.
| Consultation | Feedback deadline | Feedback received |
|---|---|---|
| 29 Jul 2022 | 135 |
Summary
GeneratedThe Commission proposal introduces a tax allowance for equity financing and limits deductions for debt interest to reduce the tax advantage of debt over equity. It affects corporations across all sectors and their financing decisions. Currently at the Commission proposal stage, it requires adoption by the Council under the special legislative procedure.
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