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6.5.2.2. Interest

Interest expenses on borrowed money are also generally deductible in accordance with the general principles stated above. Note, however, that special rules may apply to limit or deny specific types of interest payments (e.g. those covered by specific anti-avoidance provisions, such as thin-capitalization – see 13.2.). For the deductibility of penalty interest (e.g. on underpaid tax), see below.