"capitalization rules" is correct and usable in written English.
You can use it when you need to refer to the conventions for using upper and lowercase letters in writing. For example, "The teacher explained the capitalization rules to the class."
Thin capitalization rules prevent firms from deducting excessive interest expenses from their tax base.
The purpose of thin capitalization rules is to limit multinational firms' possibilities of engaging in tax planning via debt shifting.
Mainly two approaches are used: most thin capitalization rules limit the deductibility of interest expense if the amount of debt exceeds a specific leverage ratio.
They show theoretically that thin capitalization rules may help explain why firms issue both debt and equity even if the former is generally privileged by the tax law.
Maßbaum and Sureth (2009) consider thin capitalization rules that are characterized by a given permitted debt-equity ratio and investigate its impact on firms' financing decisions using the capital structure model of Miller (1977).
This paper analyzes the optimal design of thin capitalization rules in the presence of financial frictions when a host country, in the first stage, chooses the type of thin capitalization rule and then, in the second stage, decides about the strictness.
A particular area within this research deals with the relationship between thin-capitalization rules or other interest deduction restrictions and company capital structure decisions.
(2014) examine the impact of thin-capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals in 54 countries.
In line with previous studies, they carve out a significant debt-reducing effect of different thin-capitalization rules on foreign partners' debt.
In turn, thin-capitalization rules imply that a company that has too much debt compared to equity will be denied fiscal deductions for part of its interest payments, or that part of interest payments will be reclassified as dividends and will not obviously be considered as fiscal deductions.
3, including the new thin-capitalization rule.
