INSIGHT
FinTech’s tax advantages under new OBBBAÂ
Rono Ghosh, Daniel Figueredo • August 5, 2025
Services: Tax Industries: FinTech
The One Big Beautiful Bill Act (OBBBA) has fundamentally transformed the tax landscape for financial technology companies, creating unprecedented opportunities for strategic tax planning and capital optimization.
As your FinTech business navigates this new regulatory environment, understanding these changes can significantly impact your bottom line and competitive positioning.
The return of EBITDA-based calculations: A game-changer for capital-intensive operations
The permanent restoration of the more favorable EBITDA-based calculation for business interest deduction limitations represents one of the most significant provisions affecting your industry. Under the previous framework, many FinTech companies faced restrictive interest deduction caps that limited their ability to optimize capital structures effectively.
How the enhanced deduction works
The OBBBA allows you to add back depreciation, amortization, and depletion when calculating your adjusted taxable income for business interest deduction purposes. This change is particularly beneficial if your company has made substantial investments in:
- Technology infrastructure and software developmentÂ
- Data centers and computing equipmentÂ
- Intellectual property and platform developmentÂ
- Payment processing systems and security infrastructureÂ
For rapidly scaling FinTech operations, this enhancement can increase your deductible business interest by 20-40% compared to previous limitations, providing crucial cash flow advantages during growth phases.
Strategic capital structure optimization
With expanded interest deductibility, you now have greater flexibility in structuring your financing arrangements. Consider these approaches:
- Debt-to-equity rebalancing: Higher interest deduction thresholds may support increased leverage ratios while maintaining tax efficiencyÂ
- Refinancing opportunities: Existing debt structures can be optimized to take advantage of enhanced deductibility limitsÂ
- Growth capital planning: New financing initiatives can incorporate these favorable provisions into their tax planning from inceptionÂ
International tax provisions: Navigating GILTI and FDII modifications
The OBBBA’s modifications to Global Intangible Low-Taxed Income (GILTI) and Foreign-Derived Intangible Income (FDII) provisions create new opportunities for FinTech companies with international operations or cross-border service offerings.
GILTI provisions and your global expansion
If your FinTech platform operates internationally or provides services to foreign customers, the modified GILTI provisions can reduce your overall tax burden on foreign income. The changes include:
- Modified high-tax exceptions that benefit companies with substantial international operationsÂ
- Enhanced deduction calculations for qualifying business activitiesÂ
FDII benefits for domestic innovation
The enhanced FDII provisions reward companies that develop intangible assets domestically and derive income from foreign customers. This is particularly relevant if your company:
- Licenses proprietary technology to international partnersÂ
- Provides software-as-a-service solutions to foreign clients
- Develops fintech innovations that generate foreign-sourced incomeÂ
Section 199A deduction expansion: BDC investment opportunities
The extension of the Section 199A deduction to business development company (BDC) interest dividends opens new avenues for tax-efficient income generation. This provision allows qualifying taxpayers to deduct up to 20% of BDC interest dividends, creating attractive investment opportunities.
Strategic BDC considerations
For FinTech companies with excess cash or investment portfolios, BDC investments can now provide:
- Enhanced after-tax returns through the Section 199A deductionÂ
- Diversification opportunities within the financial services sectorÂ
- Potential synergies with your core business operationsÂ
However, careful analysis is required to determine if these investments align with your overall business strategy and risk tolerance.
Implementation strategies for your FinTech business
Immediate action items
To capitalize on these new provisions, consider taking these steps:
- Conduct a comprehensive tax position review: Analyze your current capital structure and international operations to identify optimization opportunitiesÂ
- Evaluate financing arrangements: Review existing debt agreements and consider refinancing opportunities that leverage enhanced interest deductibilityÂ
- Assess international tax planning: If you have foreign operations, examine how GILTI and FDII modifications affect your global tax strategyÂ
Long-term planning considerations
The permanence of these provisions allows for strategic long-term planning. Consider how these changes affect:
- Multi-year capital investment decisionsÂ
- International expansion strategiesÂ
- Partnership and acquisition structuresÂ
- Overall business development initiativesÂ
Compliance and documentation requirements
While these provisions offer significant benefits, proper documentation and compliance remain critical. The enhanced deductions require careful tracking of:
- Interest expense allocations and calculationsÂ
- Foreign income sourcing and attributionÂ
- BDC investment classifications and dividend characterizationÂ
- Supporting documentation for all claimed deductionsÂ
Moving forward with confidence
The OBBBA represents a pivotal moment for FinTech tax planning, offering substantial opportunities for companies prepared to act strategically. The enhanced business interest deductions, combined with favorable international provisions, can significantly improve your tax efficiency and cash flow position.
Success in leveraging these provisions requires careful analysis of your specific circumstances, thorough planning, and ongoing compliance monitoring. The complexity of these rules demands experienced guidance to maximize benefits while maintaining full compliance.
Ready to optimize your FinTech tax strategy under the new OBBBA provisions? Contact BPM today to discuss how these changes can benefit your specific business situation. Our team specializes in helping financial technology companies navigate complex tax regulations and implement strategic planning solutions that drive sustainable growth.Â

Daniel Figueredo
Partner, Advisory and Assurance
Nonprofit Co-leader
FinTech Leader
Daniel is an Advisory and Assurance Partner at BPM, and a leader in BPM’s Nonprofit, Blockchain and Digital Assets and …

Rono Ghosh
Partner, International Tax
Rono has 20 years of advisory experience at public accounting firms and investment banks, with specialized knowledge of international tax …
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