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10.2. Financing Regimes

There is no specific tax-driven financing regime. Interest paid is normally deductible subject to the general test of necessity and connection with taxable income, and an additional thin-capitalization test. Interest payments to non-residents are normally subject to withholding tax. However, there is an exemption when the beneficiary is an international finance institution  (e.g. IFC).

Funding through the stock market and securitization has several exemptions on VAT, capital gains and transaction tax