Directive 2011/96 - Common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (recast)

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Contents

  1. Current status
  2. Key information
  3. Key dates
  4. Legislative text
  5. Original proposal
  6. Sources and disclaimer
  7. Full version
  8. EU Monitor

1.

Current status

This directive has been published on December 29, 2011, entered into force on January 18, 2012 and should have been implemented in national regulation on the same day at the latest.

2.

Key information

official title

Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (recast)
 
Legal instrument Directive
Number legal act Directive 2011/96
Original proposal COM(2010)784 EN
CELEX number81 32011L0096

3.

Key dates

Document 30-11-2011
Publication in Official Journal 29-12-2011; OJ L 345, 29.12.2011,Special edition in Croatian: Chapter 17 Volume 002
Effect 18-01-2012; Entry into force Date pub. +20 See Art 10
End of validity 31-12-9999
Transposition 18-01-2012; At the latest See Art 8

4.

Legislative text

29.12.2011   

EN

Official Journal of the European Union

L 345/8

 

COUNCIL DIRECTIVE 2011/96/EU

of 30 November 2011

on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States

(recast)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 115 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Parliament (1),

Having regard to the opinion of the European Economic and Social Committee (2),

Acting in accordance with a special legislative procedure,

Whereas:

 

(1)

Council Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (3) has been substantially amended several times (4). Since further amendments are to be made, it should be recast in the interests of clarity.

 

(2)

In the light of the judgment of the Court of Justice of 6 May 2008 in Case C-133/06 (5), it is considered necessary to redraft the wording of the second subparagraph of Article 4(3) of Directive 90/435/EEC, for the purpose of clarifying that the rules referred to therein are adopted by the Council acting in accordance with the procedure provided for in the Treaty. It is furthermore appropriate to update the Annexes to that Directive.

 

(3)

The objective of this Directive is to exempt dividends and other profit distributions paid by subsidiary companies to their parent companies from withholding taxes and to eliminate double taxation of such income at the level of the parent company.

 

(4)

The grouping together of companies of different Member States may be necessary in order to create within the Union conditions analogous to those of an internal market and in order thus to ensure the effective functioning of such an internal market. Such operations should not to be hampered by restrictions, disadvantages or distortions arising in particular from the tax provisions of the Member States. It is therefore necessary, with respect to such grouping together of companies of different Member States, to provide for tax rules which are neutral from the point of view of competition, in order to allow enterprises to adapt to the requirements of the internal market, to increase their productivity and to improve their competitive strength at the international level.

 

(5)

Such grouping together may result in the formation of groups of parent companies and subsidiaries.

 

(6)

Before the entry into force of Directive 90/435/EEC, the tax provisions governing the relations between parent companies and subsidiaries of different Member States varied appreciably from one Member State to another and were generally less advantageous than those applicable to parent companies and subsidiaries of the same Member State. Cooperation between companies of different Member States was thereby disadvantaged in comparison with cooperation between companies of the same Member State. It was necessary to eliminate that disadvantage by the introduction of a common system in order to facilitate the grouping together of companies at Union level.

 

(7)

Where a parent company by virtue of its association with its subsidiary receives distributed profits, the Member State of the parent company must either refrain from taxing such profits, or tax such profits while authorising the parent company to deduct from the amount of tax due that fraction of the corporation tax paid by the subsidiary which relates to those profits.

 

(8)

It is furthermore necessary, in order to ensure fiscal neutrality, that the profits which a subsidiary distributes to its...


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This text has been adopted from EUR-Lex.

5.

Original proposal

  • COM(2010)784 - Common system of taxation applicable in the case of parent companies and subsidiaries of different Member States
 

6.

Sources and disclaimer

For further information you may want to consult the following sources that have been used to compile this dossier:
  • dossier EUR-Lex decision82

This dossier is compiled each night drawing from aforementioned sources through automated processes. We have invested a great deal in optimising the programming underlying these processes. However, we cannot guarantee the sources we draw our information from nor the resulting dossier are without fault.

 

7.

Full version

This page is also available in a full version containing the summary of legislation, de geconsolideerde versie, the legal context, de Europese rechtsgrond, other dossiers related to the dossier at hand and finally the related cases of the European Court of Justice.

The full version is available for registered users of the EU Monitor by ANP and PDC Informatie Architectuur.

8.

EU Monitor

The EU Monitor enables its users to keep track of the European process of lawmaking, focusing on the relevant dossiers. It automatically signals developments in your chosen topics of interest. Apologies to unregistered users, we can no longer add new users.This service will discontinue in the near future.


  • 1. 
    COM(87) 868 PV.

     
  • 2. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 3. 
    COM(2008) 691 final.

     
  • 4. 
    Annex II, Part A of this proposal.

     
  • 5. 
    COM(2008) 691 final.

     
  • 6. 
    " Should it prove necessary during the legislative process to go beyond straightforward codification and make substantive changes, it will be the Commission's responsibility to submit any proposal(s), where appropriate ".

     
  • 7. 
    " Should it prove necessary during the legislative process to go beyond straightforward codification and make substantive changes, it will be the Commission's responsibility to submit any proposal(s), where appropriate ".

     
  • 8. 
    ' The European Parliament, the Council and the Commission note that if it should appear necessary to go beyond straightforward codification and make substantive changes, the Commission will be able to choose, case by case, whether to recast its proposal or whether to submit a separate proposal for amendment, leaving its codification proposal on the table, and then, once the substantive change has been adopted, incorporate it into the proposal for codification '.

     
  • 9. 
    " Should it prove necessary during the legislative process to go beyond straightforward codification and make substantive changes, it will be the Commission's responsibility to submit any proposal(s), where appropriate ".

     
  • 10. 
    OJ C
     
  • 11. 
    OJ C
     
  • 12. 
    OJ L 225, 20.8.1990, p. 6.

     
  • 13. 
    See Annex II, Part A.

     
  • 14. 
    COM(2008) 691 final.

     
  • 15. 
    OJ L 294, 10.11.2001, p. 1.

     
  • 16. 
    OJ L 294, 10.11.2001, p. 22.

     
  • 17. 
    OJ L 207, 18.8.2003, p. 1.

     
  • 18. 
    OJ L 207, 18.8.2003, p. 25.

     
  • 19. 
    COM(87) 868 PV.

     
  • 20. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 21. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 22. 
    COM(87) 868 PV.

     
  • 23. 
    COM(87) 868 PV.

     
  • 24. 
    COM(87) 868 PV.

     
  • 25. 
    COM(87) 868 PV.

     
  • 26. 
    COM(87) 868 PV.

     
  • 27. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 28. 
    COM(87) 868 PV.

     
  • 29. 
    COM(87) 868 PV.

     
  • 30. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 31. 
    COM(87) 868 PV.

     
  • 32. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 33. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 34. 
    COM(2008) 691 final.

     
  • 35. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 36. 
    COM(2008) 691 final.

     
  • 37. 
    COM(2008) 691 final.

     
  • 38. 
    Annex II, Part A of this proposal.

     
  • 39. 
    COM(2008) 691 final.

     
  • 40. 
    " Should it prove necessary during the legislative process to go beyond straightforward codification and make substantive changes, it will be the Commission's responsibility to submit any proposal(s), where appropriate ".

     
  • 41. 
    COM(87) 868 PV.

     
  • 42. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 43. 
    COM(87) 868 PV.

     
  • 44. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 45. 
    COM(2008) 691 final.

     
  • 46. 
    Annex II, Part A of this proposal.

     
  • 47. 
    COM(2008) 691 final.

     
  • 48. 
    " Should it prove necessary during the legislative process to go beyond straightforward codification and make substantive changes, it will be the Commission's responsibility to submit any proposal(s), where appropriate ".

     
  • 49. 
    " Should it prove necessary during the legislative process to go beyond straightforward codification and make substantive changes, it will be the Commission's responsibility to submit any proposal(s), where appropriate ".

     
  • 50. 
    ' The European Parliament, the Council and the Commission note that if it should appear necessary to go beyond straightforward codification and make substantive changes, the Commission will be able to choose, case by case, whether to recast its proposal or whether to submit a separate proposal for amendment, leaving its codification proposal on the table, and then, once the substantive change has been adopted, incorporate it into the proposal for codification '.

     
  • 51. 
    " Should it prove necessary during the legislative process to go beyond straightforward codification and make substantive changes, it will be the Commission's responsibility to submit any proposal(s), where appropriate ".

     
  • 52. 
    OJ C
     
  • 53. 
    OJ C
     
  • 54. 
    OJ L 225, 20.8.1990, p. 6.

     
  • 55. 
    See Annex II, Part A.

     
  • 56. 
    COM(2008) 691 final.

     
  • 57. 
    OJ L 294, 10.11.2001, p. 1.

     
  • 58. 
    OJ L 294, 10.11.2001, p. 22.

     
  • 59. 
    OJ L 207, 18.8.2003, p. 1.

     
  • 60. 
    OJ L 207, 18.8.2003, p.
     
  • 61. 
    COM(87) 868 PV.

     
  • 62. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 63. 
    COM(87) 868 PV.

     
  • 64. 
    COM(87) 868 PV.

     
  • 65. 
    COM(87) 868 PV.

     
  • 66. 
    COM(87) 868 PV.

     
  • 67. 
    COM(87) 868 PV.

     
  • 68. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 69. 
    COM(87) 868 PV.

     
  • 70. 
    COM(87) 868 PV.

     
  • 71. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 72. 
    COM(87) 868 PV.

     
  • 73. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 74. 
    COM(2008) 691 final.

     
  • 75. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 76. 
    COM(2008) 691 final.

     
  • 77. 
    COM(2008) 691 final.

     
  • 78. 
    COM(2008) 691 final.

     
  • 79. 
    COM(87) 868 PV.

     
  • 80. 
    Carried out pursuant to the Communication from the Commission to the European Parliament and the Council
     
  • 81. 
    Deze databank van de Europese Unie biedt de mogelijkheid de actuele werkzaamheden (workflow) van de Europese instellingen (Europees Parlement, Raad, ESC, Comité van de Regio's, Europese Centrale Bank, Hof van Justitie enz.) te volgen. EURlex volgt alle voorstellen (zoals wetgevende en begrotingsdossiers) en mededelingen van de Commissie, vanaf het moment dat ze aan de Raad of het Europees Parlement worden voorgelegd.
     
  • 82. 
    EUR-lex provides an overview of the proposal, amendments, citations and legality.