Press Release: State aid: Commission concludes Belgian ‘Excess Profit’ tax scheme illegal; around €700 million to be recovered from 35 multinational companies

The European Commission concluded on 12 January 2016 that selective tax advantages granted by Belgium under its 'excess profit' tax scheme were illegal under the European Union's state aid rules.

As such scheme benefitted at least 35 multinationals - mainly from the EU - these should return unpaid taxes to the country.

The 'Excess Profit' scheme, created in Belgium in 2005, allowed multinational companies to reduce their tax base for alleged 'excess profit' on the basis of a binding tax ruling. These were typically valid for four years and could be renewed.

ESO: Background information: State aid: Commission opens in-depth investigation into the Belgian excess profit ruling system http://www.europeansources.info/record/press-release-state-aid-commission-opens-in-depth-investigation-into-the-belgian-excess-profit-ruling-system/

The Guardian, 11.01.16: Belgium's tax breaks for multinationals ruled illegal state aid http://www.theguardian.com/business/2016/jan/11/belgiums-tax-breaks-for-multinationals-ruled-illegal-state-aid

The Wall Street Journal, 11.01.16: EU Orders Belgium to Recover Unpaid Taxes From 35 Firms http://www.wsj.com/articles/eu-to-rule-on-illegal-tax-breaks-for-multinationals-1452506740

The New York Times, 11.01.16: Belgium’s Tax Break to Multinational Companies Is Ruled Illegal http://www.nytimes.com/2016/01/12/business/international/belgium-eu-tax-break.html

BBC News, 11.01.16: Belgium ordered to reverse tax breaks http://www.bbc.co.uk/news/business-35280160

EUObserver, 11.01.16: EU commission: Belgian tax rulings are 'illegal' https://euobserver.com/economic/131780

Deutsche Welle, 11.01.16: EU accuses Belgium of granting illegal tax breaks http://dw.com/p/1HbJ5

Euronews, 11.01.16: EU orders Belgium to claw back extra taxes from major firms http://www.euronews.com/2016/01/11/eu-orders-belgium-to-claw-back-extra-taxes-from-major-firms/

EurActiv, 11.01.16: EU shuts down Belgium tax breaks for multinationals http://www.euractiv.com/sections/euro-finance/eu-shuts-down-belgium-tax-breaks-multinationals-320853

Politico, 11.01.16: Belgian tax rules are illegal state aid http://www.politico.eu/article/commission-rules-belgian-tax-rules-are-illegal-state-aid/

European Commission: DG Communication: STATEMENT/16/44, 11.01.16: Belgian 'Excess Profit' tax scheme - Statement by Commissioner Margrethe Vestager http://europa.eu/rapid/press-release_STATEMENT-16-44_en.htm

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