BEPS Action 4 aims to limit base erosion and profit shifting caused by differing interest deduction allowances among varying jurisdictions in which multinational enterprises operate by recommending that countries implement a “fixed ratio” rule that would limit net interest deductions claimed by an entity to a fixed percentage of earnings before interest, taxes, depreciation and amortization (EBITDA) that is somewhere between 10% and 30% of applicable EBITDA.