The parent-subsidiary directive and nil-rate corporation tax
InBelgische Staat v Wereldhave Belgium Comm. VA and others(Case C-448/15) (8 March 2017) the CJEU found that Directive 90/435 (the parent-subsidiary directive) does not apply in circumstances where the recipient is subject to a zero rate of corporation tax.
Wereldhave Belgium (a limited partnership with a share capital) was owned by Wereldhave International and Wereldhave both Dutch public limited companies. Wereldhave Belgium had paid to Wereldhave International and Wereldhave dividends totalling over €20m. Both parent companies contended that no withholding tax was due on the dividends under the parent-subsidiary directive. The Belgian tax authorities considered that the recipients of the dividends were Netherlands fiscal investment institutions (FIIs) subject to corporation tax at a nil rate; and were therefore not eligible for the exemption.
The CJEU noted that the directive seeks to ensure the tax neutrality of the distribution of...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
The parent-subsidiary directive and nil-rate corporation tax
InBelgische Staat v Wereldhave Belgium Comm. VA and others(Case C-448/15) (8 March 2017) the CJEU found that Directive 90/435 (the parent-subsidiary directive) does not apply in circumstances where the recipient is subject to a zero rate of corporation tax.
Wereldhave Belgium (a limited partnership with a share capital) was owned by Wereldhave International and Wereldhave both Dutch public limited companies. Wereldhave Belgium had paid to Wereldhave International and Wereldhave dividends totalling over €20m. Both parent companies contended that no withholding tax was due on the dividends under the parent-subsidiary directive. The Belgian tax authorities considered that the recipients of the dividends were Netherlands fiscal investment institutions (FIIs) subject to corporation tax at a nil rate; and were therefore not eligible for the exemption.
The CJEU noted that the directive seeks to ensure the tax neutrality of the distribution of...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
