1 ETG Malta 2010 : Impact of EU on national tax measures

2 EU Law (pm) : Primary Law –Treaty of Rome / Maastricht / Amsterdam / Nice / Lisbon / … –Freedom of goods, services, persons and capital –Free citizenship (as of Maastricht Treaty)

3 EU Law (pm) : Secundary Law –Regulations : no need for national transposition –Directives : transposition by the national legislator Jurisprudence EU Court

4 Recent issues of cross-border interest: 1)EU Parent-Subsidiary Directive 2)Reduced WHT rates on dividends 3)VAT registration requirement

5 1) EU Parent-Subsidiary Directive EU Parent-Subsidiary Directive : –Exemption of withholding tax (pm) –Elimination of economic double taxation Belgian implementation : –Dividend received deduction (DRD) –Articles 202 ITC and following

6 1) DRD : National legislation Conditions : –Financial fixed assets –One year holding period –10% participation or € 1,2 mio acq. value –Originating from a “normal” tax jurisdiction

7 1) DRD : National legislation Financial fixed assets : –EU Commission –Ref. IP/09/1770 (November 20, 2009) –Conditions not provided for under the article 3 of the said Directive : only minimal participation is required ?

8 1) DRD : National legislation Practical relevance : –Cross border dividend distribution

9 2) Reduced WHT of 15% Conditions : –Shares issued as of 1994 –Shares representing a cash contribution –Shares are nominative or held in open deposit with a Belgian bank

10 2) Reduced WHT of 15% Open deposit in Belgium : –EU Commission –Ref. IP/09/1452 –October 8, 2009 –Open deposit is to be allowed in the EEA ?

11 2) Reduced WHT of 15% Practical relevance : –Cross border dividend distribution in case there is no beneficial tax treaty provision no application of the Parent-Subs. Directive

12 3) Registration of building contractor Legislation : –Reduced 6% VAT rate in various cases –EUR upon construction of a new house –Renovation investments –Demolition and reconstruction –…

13 3) Registration of building contractor Registration requirement : –Court of Antwerp –November 4, 2009 –Infringement of neutrality principle : Similar services need to be subject to similar VAT taxation

14 3) Registration of building contractor Practical relevance : –Market access for EU building contactors

15 Check your home country ?

16 Questions ? 0032/3/