Arrangement fee not (yet) interest within the meaning of the interest barrier

In the context of financing, additional financing fees are often incurred in addition to interest expenses for the provision of debt capital. In a recent ruling, the Federal Fiscal Court (BFH) decided that an arrangement fee - in contrast to the view of the tax authorities - does not qualify as interest expense and is therefore not subject to the interest barrier. The article discusses the BFH ruling and provides an outlook against the backdrop of the announced “Growth Opportunities Act”.