You are here:
11 December 2020 / article

Interpretation and application of the general anti-abuse rule of the Parent-Subsidiary Directive

We prepared the ‘‘Overview of EU Member States and Switzerland’’, which gives you a comprehensive overview of the current state of play on the interpretation and application of the EU Parent Subsidiary Directive general anti-abuse rule (Directive 2015/121/EU) in the EU member states and how Switzerland deals with it.

As you may have noticed, it has now been approximately five years since the EU Parent Subsidiary Directive general anti-abuse rule (Directive 2015/121/EU (PSD GAAR)) was included in the EU Parent Subsidiary Directive (Directive 2011/96/EU). Since then legislative developments have occurred and some countries have developed internal guidance, administrative practice or case-law concerning the interpretation. Furthermore, the European Court of Justice (ECJ) has taken ground-breaking decisions in the past few years that impact the interpretation and application of the PSD GAAR; in particular, the ECJ judgments in Eqiom, Juhler Holding and Deister Holding cases, and the Danish cases.

Additionally, these tax developments are also of importance for the principal purpose test (PPT) which is included in many tax treaties via the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). It may be expected that countries would follow a similar interpretation for both the PPT and the PSD GAAR.

In this context we prepared the ‘‘Overview of EU Member States and Switzerland’’, which gives you a comprehensive overview of the current state of play on the interpretation and application of the PSD GAAR in the EU member states and how Switzerland deals with it.

Read and download the overview



Tax shelter for equity investments in starting companies indirect investment through starter funds finally possible

Brexit: What is the applicable VAT regime for supplies of goods between the EU and UK as from January 1st, 2021?

The UK’s new status as third country for VAT purposes - as a result of the Brexit - has entirely changed the applicable VAT regime for supplies of goods between... read more
flash-tax-interest-deduction

Issuance of a circular on interest deduction limitation rule

The long-awaited guidance notably clarifies the notion of borrowing costs and the grandfathering rule for loans predating 17 June 2016. read more
Belgium introduces a wealth tax with new tax on securities accounts

Belgium introduces a wealth tax with new tax on securities accounts

As announced in a previous article, the Belgian government wants to introduce a new tax in succession to the annulled tax on securities accounts. The final draft... read more
Stay informed

Don't miss out. Stay up to date about our latest news and events.

Stay informed