Skip to main content
Taxes

Earnings stripping

One common strategy used by corporations to lower their taxable income is by paying inflated interest rates to affiliated third parties. This practice, known as "earnings stripping," involves shifting profits to related entities through excessive interest payments. Despite being legal, it has been a controversial topic in the world of finance. Let's delve into the details of this concept and understand its implications.

Related terms

Loss relief

Understand the meaning and definition of Loss relief in the context of stock market, trading, and investments.

MORE
Floors

Understand the meaning and definition of Floors in the context of stock market, trading, and investments.

MORE
Secret comparable

Understand the meaning and definition of Secret comparable in the context of stock market, trading, and investments.

MORE
Abuse of law

Understand the meaning and definition of Abuse of law in the context of stock market, trading, and investments.

MORE
Final tax

Understand the meaning and definition of Final tax in the context of stock market, trading, and investments.

MORE
Expatriation rules

Understand the meaning and definition of Expatriation rules in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.5 Cr+ happy customers
+91