Directive 90/435 / EEC (Parent-Subsidiary Directive)
 Directive 90/435 / EEC |
|
|---|---|
| Title: | Council Directive 90/435 / EEC of 23 July 1990 on the common tax system for parent companies and subsidiaries in different Member States |
| Designation: (not official) |
Mother-Daughter Policy |
| Scope: | EU |
| Legal matter: | Tax law |
| Basis: | EEC Treaty , in particular Article 100 |
| Procedure overview: |
European Commission European Parliament IPEX Wiki |
| Replaced by: | Directive 2011/96 / EU |
| Expiry: | 17 January 2012 |
| Reference: | OJ L 225 of 20.8.1990, pp. 6-9 |
| Full text |
Consolidated version (not official) basic version |
| Regulation has expired. | |
| Please note the information on the current version of legal acts of the European Union ! | |
The Parent- Subsidiary Directive ( Directive 90/435 / EEC of the Council of July 23, 1990 on the common tax system for parent companies and subsidiaries of different member states ) is an EC directive . It came into force on July 30, 1990 and regulates the taxation of dividend payments between affiliated companies within the European Community .
requirements
The debtor and creditor of the payments must be corporations based in two different member states of the European Union . A minimum participation quota of the receiving company ( parent company ) of 10% in the capital of the company (up to 2006: 20%; up to 2008: 15%) that makes the payments ( subsidiary ) is required. Alternatively, if a calculation is made based on voting rights , a minimum period of ownership of two years is added. Also investments in a country of the subsidiary resident permanent establishment are favored.
Goals and legal consequences
In principle, multiple taxation of dividends paid across borders should be avoided.
The subsidiary is taxed in accordance with the regulations of the country in which it is resident, which is entitled to the full tax revenue. However, he may not levy any capital gains tax on the distribution of dividends . The country of residence of the parent company is responsible for avoiding double taxation : it can use either the exemption or the credit method for dividend payments .
Implementation in German law
In the case of investments into Germany (inbound), no withholding tax is levied in accordance with Section 43b EStG and Section 50d Paragraphs 1, 1a and 2 EStG . In the event of mutual application, the minimum participation quota will be reduced to 10%. National abuse regulations are laid down in Section 50d (3) EStG, in these cases there is no entitlement to the application of the directive in favor of the foreign company.
In the case of investments from Germany (outbound), an exemption for dividends is granted in accordance with Section 8b (1) KStG , with 5% of the payments received being regarded as non-deductible operating expenses when determining the taxable income (modified zero- income method ), partial write-offs on the capital participation may according to § 8b para. 3 KStG are not included.
Furthermore, the Parent-Subsidiary Directive is implemented in the determination of the trade tax assessment base by dividing profit distributions from a foreign EU subsidiary to its parent company i. S. d. § 9 No. 7 GewStG can be shortened. The parent company, which establishes a commercial enterprise in Germany, has to show the participation in the foreign subsidiary since the beginning of the survey period amounting to more than 10% of the shares in the subsidiary. Furthermore, the foreign subsidiary must use these profits from so-called active activities i. S. d. Refer to § 8 No. 1 to 6 AStG.
Individual evidence
- ↑ Directive 90/435 / EEC , ABl. 1990, L 225 / 6-9
