Skatteudvalget 2019-20
L 48 Bilag 14
Offentligt
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European Commission
Taxation and Customs Union
CFC Rules within the Council
Directive EU
6/ 6 ATAD
Uwe Ihli
– DG TAXUD Unit Company tax initiatives
Adam
Zalasiński –
DG TAXUD
Unit Legal Affairs –
Direct
taxation
Hearing at the Fiscal Affairs Committee of the Folketinget,
15 January 2020, Copenhagen
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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Main Points of the CFC Rules in the ATAD Directive
•
Member States agreed on CFC rules within the ATAD
Directive as a minimum standard
•
Member States are free to introduce
higher levels of
protection
against aggressive tax planning
as long as
these measures are in line with international, EU and
national obligations
(e.g. WTO rules, Double Taxation
Agreements, EU Treaty Freedoms, domestic tax
principles)
European Commission
Taxation and Customs Union
2
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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Main Points of the CFC Rules in the ATAD Directive
•
The provision for the CFC in Article 7 of the ATAD allows
two
approaches for the calculation of the income to be
included:
•
certain categories of passive (tainted) income
(Article 7 (2)(a))
or
•
non-distributed income of an entity arising from non-genuine
arrangements
(Article 7 (2) (b))
•
Furthermore, independently of the minimum standard or
the chosen alternative for included income, there are
obligations imposed on MS on
•
the way of income calculation,
•
the treatment of losses and profit distributions from CFC entities
as well as
•
gains from the disposal of participations in CFC entities
European Commission
Taxation and Customs Union
3
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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Main Points of the CFC Rules in the ATAD Directive
•
Finally, there is a provision on
the deduction of taxed by
paid by the CFC entity
•
With the aim to allow the MS to consider compliance cost
and administrative burden as well the absence of
aggressive tax planning risks in the type of business
activities of the CF C entities in respect of their national
tax policies, the ATAD includes
options for MS:
•
Exclusions if Art. 7(2)(a) applies
•
•
For less than 1/3 income threshold
For financial undertakings 1/3 rule threshold for business
with associated enterprise
•
Exclusions if Art. 7(2)(b) applies
•
•
low accounting profits/non trading income
low profit margin exemption
4
European Commission
Taxation and Customs Union
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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Compliance with the Internal Market freedoms
•
Option of Art. 7(2)a
•
… shall
not apply where the controlled foreign company carries on
a
substantive economic activity supported by staff, equipment, assets
and premises, as evidenced by relevant facts and circumstances
•
where the CFC is resident or situated in a third country that is not party to
the EEA Agreement, MS may decide to refrain from applying the preceding
subparagraph
–
provided that the right of establishment does not apply
•
the income to be included in the tax base of the taxpayer shall be limited
to amounts generated through assets and risks which are linked to
significant people functions carried out by the controlling company.
The attribution of CFC income shall be
calculated in accordance with the
arm's length principle
•
Option of Art. 7(2)b
European Commission
Taxation and Customs Union
5
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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ATAD - Transposition checks
•
Transposition checks
–
deadlines for the COM services
•
2 phases
–
following MS notification of national
implementing measure (NIMs)
•
Examination of completeness
–
within
6 months
from
the transposition/notification deadline
•
Examination of correctness/conformity
–
within
16-
24 months
from the transposition/notification
deadline
European Commission
Taxation and Customs Union
6
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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ATAD - Transposition checks
•
Examination of completeness
–
state of play
•
As at
1 January 2019
•
6 MS timely notified their NIMs for entire ATAD 1
excluding exit tax
•
COM opened infringement procedures against 12
MS
–
for no or incomplete notification of NIMs
•
As at
1 January 2020
•
infringement procedures against 4 MS still open
European Commission
Taxation and Customs Union
7
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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ATAD - Transposition checks
•
Examination of correctness/conformity
–
state of play
•
As at
1 January 2020
•
Most of the examination is ongoing
•
8 MS NIMs assessed as correct/conform
European Commission
Taxation and Customs Union
8
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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ATAD
–
implementation by MS
•
Options for tax bases of CFC
•
•
•
Article 7(2)a
–
tainted passive income
11 MS
•
Exclusion for under Article 7(3)
–
income
•
13 MS
•
Article 7(2)b
– income arranged by taxpayer s SPF
•
Exclusion for under Article 7(4)
– de
minimis
9 MS
8 MS
8 MS
•
/
or less passive
•
No exclusions
•
The data is subject to changes within the ongoing assessment process
European Commission
Taxation and Customs Union
9
 L 48 - 2019-20 - Bilag 14: Meddelelse om præsentationer fra den åbne høring om implementeringen af skatteundgåelsesdirektivets CFC-regler (lovforslag nr. L 48) afholdt den 15. januar 2020
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Thank you for your attention!
European Commission
Taxation and Customs Union
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