The article is devoted to elaboration on the process of thin capitalization in the OECD Member Countries. The main objective is comparative analysis of two methods of financing of companies: the debt method and the equity one. The comparative analysis has been performed from the perspective of the tax-related consequences brought about by the two different methods of financing adopted within the framework of thin capitalization. The result of the analysis will allow to more fully assess which method of financing is more advantageous for the interested companies. One must remember that it is the tax policy of companies that exerts a direct effect on the economic consequences of their operation. The tax effects demonstrate how differently the process of thin capitalization may be perceived.
