European legal act on taxation of interest and royalties between associated companies ()
DESCRIPTION: "European legal act aiming at ensuring fair taxation of payments made between associated businesses in different EU countries, while avoiding double-taxation between EU countries. It applies to: interest payments and royalty payments. "
eira:ABBeira:Non-bindingInstrumentRequirement
dct:modified2023-07-26
dct:spatialEU
dct:identifierhttp://data.europa.eu/eli/dir/2003/49/oj
dct:titleEuropean legal act on taxation of interest and royalties between associated companies
dct:descriptionThis directive aims to eliminate any obstacles to cross-border cooperation between companies within a group located in different EU countries. It does so by abolishing withholding taxes on payments of interest and royalties between associated companies in different EU Member States.
dct:publisherEUR-Lex
dct:sourcehttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32003L0049
skos:exampleFor instance, if a company based in Germany pays interest or royalties to its associated company in France, according to this directive, Germany cannot levy withholding tax on these payments. Similarly, when the French company receives these payments, it is not subject to any withholding tax in France.
eira:concepteira:SolutionBuildingBlock
skos:noteThe directive applies to interest and royalty payments made between associated companies of different Member States. It abolishes withholding taxes on such payments. The directive applies to companies of a Member State, permanent establishments in a Member State of companies of another Member State and companies of a Member State and their permanent establishments in another Member State.
eira:viewLV-Binding Power and Jurisdiction