Belgium notional interest deduction regime contrary to EU law

01 July 2013
Author: JHA

C-350/11 Agenta Spaarbank NV v Belgische Staat

On 4 July 2013, the CJEU held that the Belgian notional interest deduction regime is contrary to EU law. Under the rules, Argenta Spaarbank was denied the notional interest deduction on its equity to the extent of the net asset value of its permanent establishment situated in the Netherlands. Had the permanent establishment been established in Belgium, no reduction in respect of the permanent establishment’s assets would have to be made. The Court concluded that the regime discouraged a Belgian company from carrying out its activity through a permanent establishment situated in another state and, consequently, amounted to a breach of the freedom of establishment in Article 49 TFEU.

This article appears in the JHA July 2013 Tax Newsletter, which also features:

  1. ROSIIP GLO: Taxpayers succeed
  2. Retrospective Changes to rules on interim payment applications in tax cases
  3. FII GLO 3rd ECJ reference
  4. Portfolio Dividend Claims: High Court Trial Concludes
  5. Exit Taxes
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