European legal act on the determination of the taxable income of companies ()
DESCRIPTION: European legal act illustrating the procedures on the determination of the taxable income of business under normal regime, acquisition and merging.
eira:ABBeira:Non-bindingInstrumentRequirement
dct:modified2023-07-26
dct:spatialEU
dct:identifierhttp://data.europa.eu/eli/dir/2011/96/oj
dct:titleEuropean legal act on the determination of the taxable income of companies
dct:descriptionThis directive is a European legal act that provides rules on the determination of the taxable income of companies in the European Union. It aims to eliminate tax obstacles in the area of profit distributions between groups of companies in the EU through a common system of taxation.
dct:publisherEUR-Lex
dct:sourcehttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32011L0096
skos:exampleFor instance, if a German company holds at least 10% of the capital of a French subsidiary, the profits that the French subsidiary distributes to the German company are exempt from withholding tax in France. Furthermore, if the German company receives these profits, Germany is obliged to either refrain from taxing these profits or tax them while deducting the French tax.
eira:concepteira:SolutionBuildingBlock
skos:noteThe directive provides that profits which a subsidiary distributes to its parent company, at least 10% of the capital of which is held by the latter, are exempt from withholding tax. It also provides for a mechanism to prevent double taxation where a parent company by virtue of its association with its subsidiary receives distributed profits.
eira:viewLV-Binding Power and Jurisdiction