EU law consists not only of treaty freedoms, but also of directives for, among others, direct taxation. These cover a variety of direct taxes, from corporate income tax to personal income tax. There are so many directives that it is sometimes difficult to oversee everything. In such cases, Meijburg & Co’s professionals are here to help your organisation.
From Interest and Royalties Directive to the European Savings Tax Directive
The directives on direct taxation vary greatly. For example, there are guidelines for interest and royalties, i.e. the Interest and Royalties Directive. There is also the European Savings Tax Directive. The European Savings Tax Directive contains guidelines on exchange of info on savings accounts. In addition, the Parent-Subsidiary Directive is also a direct tax directive. It concerns the distribution of profits between companies. The following directives complete the list:
1. Merger Directive
Among other things, this covers mergers and divisions
2. Mutual Assistance Directives
These concern the exchange of information and the collection of taxes
3. Directives against tax avoidance
These are ATAD1 and ATAD2
Commission proposals for direct taxes
Aside from the applicable directives on direct taxes, there are a number of further directives awaiting approval. This approval must come from the Economic and Financial Affairs Council (ECOFIN). Due to the requirement of unanimity and the various member state interests at stake, agreement has yet to be reached on these proposals. It concerns, among others, the following EU directives:
- Proposals for a levy on financial transactions (a Financial Transaction Tax, or FTT)
- A proposal for a common (consolidated) corporate income tax base (CCTB)
- A proposal for a levy on the digital economy (Digital Services Tax, or DST)
Aside from direct tax directives, there are also a number of European regulations. Though tax is not necessarily the subject of these regulations, in practice they can be very important in its application. There are presently three supranational legal forms in the European Union. These are based on EU regulations. These legal forms are the following:
- The European economic interest grouping (EEIG)
- The European public limited company, or Societas Europaea (SE)
- The European cooperative company (ECC)
The SE and the ECC are legal forms that qualify forthe application of both the Parent-Subsidiary Directive and the Merger Directive.
Need advice on direct tax directives?
Do you require advice on directives concerning direct taxes such as the Interest and Royalties Directive? Would you like to know how to apply the Merger Directive? Meijburg & Co’s specialists are here to help you. With our extensive experience and expert knowledge, we’ll be glad to be of assistance. Feel free to contact us.