Part 1 - AL-Tax

230Table 9.4(Continued)Arm’s length Hidden profit Fixed ratio approach No revenue protectionapproach approach (debt/equity)EU-10 aCyprus X No thin capitalization rulesCzech Republic X 4:1Estonia X No thin capitalization rulesHungary X 4:1Latvia X 1:1Lithuania X 1:1Malta X General anti-avoidance rule(according to OECD guidelines)Poland X 3:1Slovakia X No thin capitalization rules(since 1 January 2004)Slovenia X Deductibility of interest rates Not specified thin capitalizationapplied by the inter-banking rulesmarketSource: IBFD and Di Gregorio et al. (2005).a This part of the table gives an initial indication of the process of circulation of corporate tax models in the EU-10 group.