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Transcript of 1 Nexia World Tax Meeting Vienna, May 31, 2008 European Holding Company Analysis by Chris Leenders,...
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Nexia World Tax MeetingVienna, May 31, 2008
European Holding Company Analysisby Chris Leenders,
International Tax Partner at Koenen en Co,Member of Nexia The Netherlands/
Nexia International
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European Holding Company Analysis
• Countries covered: 20
• Updates as per January 1, 2008
• Issues covered: 17
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European Holding Company Analysis
Countries covered:
Austria, Belgium, Cyprus, Czech Republic,Denmark, Finland, France, Germany, Greece,Hungary, Ireland, Luxembourg, Malta, The Netherlands, Portugal, Romania, Spain, Sweden, Switzerland, United Kingdom
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European Holding Company Analysis
Editorial aspects
• Word document• PDF file on website• Update annually• Countries not covered?
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European Holding Company AnalysisIssues
1. Treatment of dividend income
• Participation exemption: 18 countries (full or 95%)
• Taxable with credit: 2 countries (Greece and UK)
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European Holding Company Analysis2. Minimum participation
• At least 10% : 12 (some 0% in case of unlisted shares)
• At least 5% : 4 (France, Ireland, The Netherlands, Spain)
• Other/0% : 4 (Cyprus, UK, Hungary, Portugal)
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European Holding Company Analysis3. Treatment of capital gains
• Participation exemption: 15 (some 95%)• Taxable with credit: 2 (Greece, UK)• Taxable: 3 (Hungary, Ireland (in case not
EU/no DTA), Romania)
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European Holding Company Analysis4. Minimum participation
• In accordance with requirements mentioned in § 2
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European Holding Company Analysis5. Minimum “ownership” period
requirements
• 1 year : 10• None : 7 (Cyprus, Germany, Hungary,
Netherlands, Malta, Sweden, UK)
• 2 years: 3 (Greece, France, Romania)
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European Holding Company Analysis
6. Active business test on underlying participation
• Yes : 10• No : 10 (Czech Republic, Romania, France,
Greece, Germany, Ireland, Luxembourg, Malta, Portugal, Sweden)
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European Holding Company Analysis7. Subject to tax-test on underlying
participation
• Yes : 13• No : 7 (Greece, Netherlands (if active
business), Ireland, Luxembourg (if EU sub), Malta (if EU sub), Portugal,
Switzerland)
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European Holding Company Analysis
8. Rates CIT, DWHT, other taxes
• To various to give any comment
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European Holding Company Analysis
11. Withholding tax on liquidation
• Yes : 12• No : 8 (Cyprus, Denmark, Greece,
Ireland, Luxembourg, Malta, Spain (in some cases), UK)
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European Holding Company Analysis12. Interest deductibility;
Debt/equity ratio’s• Interest deductible:
Yes: 16 / No 4 (Cyprus, Denmark, Portugal, Romania)
• Debt/equity ratio’s: Yes: 10 / No 6 (Austria, Finland,
Greece, Ireland, Malta, Sweden)
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European Holding Company Analysis13. CFC and/or anti-abuse regulations?• CFC:
Yes: 11 / No: 9 (Austria, Czech Republic, Greece, Ireland, Luxembourg, Malta,
Netherlands, Romania, Switzerland)• Anti-abuse:
Yes: 6 (France, Germany, Netherlands, Portugal, Spain, Switzerland) / No: 14
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European Holding Company Analysis14. Advance Tax Rulings
• Yes: 16
• No: 3 (France, Greece, Ireland)
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European Holding Company Analysis16. Double tax treaty network • Does the holding company receive
treaty protection?
Yes: 18 / No: 2 (Cyprus, Greece)• Are anti treaty shopping / beneficial
ownerships tests included?Yes: 15 / No: 5 (Czech Republic, Ireland, Greece, Hungary, Romania (?)
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European Holding Company Analysis
17. Exchange control restrictions?
• None
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European Holding Company Analysis
QUESTIONS ?
THANK YOU !