| Author (Corporate) | European Commission: Press and Communication Service |
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| Series Title | Press Release |
| Series Details | IP/04/105 (27.1.04) |
| Publication Date | 27/01/2004 |
| Content Type | News |
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The European Commission issued a proposal on 30 December 2003 to broaden the scope of the European Community's Directive that provides for the elimination of withholding tax in the case of payments of interest and royalties between associated companies of different EU Member States (2003/49/EEC). The changes would see the Directive cover a larger range of companies including the European Company and the European Co-operative Society. The proposal would also, at the request of the EU's Council of Ministers, eliminate a loophole by providing that the Directive would not apply to companies that are exempt from tax on interest and royalties received. The proposal is in line with the Commission's strategy for the EU's future tax policy presented in 2001 in which the Commission stated its view that double taxation due simply to the cross-border nature of economic activity cannot be accepted, but that its elimination should not create opportunities for tax avoidance and evasion and neither should any greater co-ordination of Member States' tax systems give rise to unintentional non-taxation. |
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| Source Link | http://europa.eu/rapid/pressReleasesAction.do?reference=IP/04/105&format=HTML&rapid=0&language=EN&guiLanguage=en&display= |
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| Subject Categories | Law, Taxation |
| Countries / Regions | Europe |
