Directive 2014/86/EU of the Council of 8 July 2014 ()
DESCRIPTION: "European Legal Act on providing a competition-neutral taxation rules concerning dividends and profits distributed by subsidiaries to their parent company. (It is a common system designed to facilitate the grouping together of companies across the European Union (EU), with a view to ensuring that the internal market functions effectively). "
eira:ABBeira:BindingInstrumentRequirement
dct:modified2023-07-26
dct:spatialEU
dct:identifierhttp://data.europa.eu/eli/dir/2014/86/oj
dct:titleDirective 2014/86/EU of the Council of 8 July 2014 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States.
dct:descriptionDirective 2014/86/EU is a regulation issued by the Council of the European Union on 8 July 2014, which pertains to the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States. It aims to prevent double taxation of parent companies on the profits of their subsidiaries.
dct:publisherEUR-Lex
dct:sourcehttps://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0086
skos:exampleFor instance, if a German company has a subsidiary in France, the profits made by the French subsidiary will not be subject to taxation in France under the Directive 2014/86/EU. Instead, these profits will only be taxed in Germany, where the parent company is based. This prevents the double taxation of the same income in two different Member States.
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skos:noteThe Directive 2014/86/EU amends Directive 2011/96/EU. It prevents the double taxation of a parent company by its subsidiary's Member State and the Member State of the parent company. It also provides for a withholding tax exemption for profit distributions made by subsidiary companies to their parent companies. The directive applies to companies of different Member States that meet certain conditions and are subject to corporation tax.
eira:viewLV-Binding Power and Jurisdiction