AmFree challenges the Belgian implementation of the Undertaxed Profits Rule (UTPR) under the EU’s Pillar Two Directive. The Court referred preliminary questions to the Court of Justice of the EU (CJEU), asking whether the UTPR aligns with EU primary law, including the right to property, the freedom to conduct a business, the principle of equal treatment and the principle of fiscal territoriality.
This referral confirms that the validity of the UTPR must be assessed at the EU level, with potential implications for all EU Member States. Since proceedings before the CJEU take on average 1,5 year, a decision can be expected by the end of 2026. Despite the ongoing legal challenge, businesses are advised to continue preparing for UTPR compliance as the rules remain in effect pending a final decision, although taxpayers may want to consider taking proactive steps to safeguard their rights.
We are proud that Loyens & Loeff is advising AmFree in this landmark case. The multidisciplinary team involved in this matter includes the colleagues listed below.
