Anti Tax Avoidance Directive (ATAD)
The EU Anti-Tax Avoidance Directives (ATAD I and II) underpin the EU Commission's Action Plan to fight corporate tax avoidance. In essence, the ATAD obliges EU Member States to introduce minimum, legally binding anti-corporate tax avoidance rules. We help you to design a strategy that suits your business.
The ATADs will have a substantial impact on the corporate tax position of EU businesses, including the Belgian business operations. In particular Belgian holding, IP, intra group financing and principal / trading operations should be reviewed in the light of these ATADs.
In brief, the ATADs lays down the following de minimis rules against corporate taxation avoidance:
- Interest deduction limitation to in principle 30% of EBITDA of a company;
- Exit taxation rules;
- A general anti-abuse rule (GAAR);
- Controlled foreign company (CFC) legislation applicable to both EU and third countries;
- Anti-hybrid mismatch rules applicable to both EU and third countries;
Most ATAD rules must be implemented prior to 31 December 2018 and applied as of 1 January 2019.
Our ATAD Services
We believe difficulty will arise with the implementation process. The ATADs are likely to create significant uncertainty in EU cross border corporate taxation. We keep a close look at how various EU Member States are implementing these ATADs and analyse consequences for Belgian business. Our team can help you to develop an initial inventory of the likely impact of the ATADs on your group companies in the main EU Member States.
Our ATAD Team
Our ATAD team consists of a mix of Belgian corporate tax lawyers and EU corporate tax lawyers with the necessary expertise and experience. We can assist in designing a tax strategy to mitigate the potential adverse tax consequences of the ATADs to your business in the EU, including the necessary modifications to your group structure, intra group finance operations, IP structures, etc.