The EU Passive Income Tax Directives
A Commentary on the Parent-Subsidiary and Interest-Royalty Directives
Published on 18. November 2025
Book
Hardback
344 pages
978-1-0353-3428-5 (ISBN)
Description
In this Commentary, expert authors present in-depth analysis of the different provisions of the Parent-Subsidiary Directive (Council Directive 2011/96/EU) and the Interest and Royalty Directive (Council Directive 2003/49/EC). They explore how these directives strengthen the freedom of establishment and the free movement of capital by removing double taxation on dividends, interest, and royalties paid between associated companies, facilitating European integration. Chapters consider the historical evolution of the directives, their interpretation by the Court of Justice, and their practical importance, with specific attention paid to recent developments regarding tax abuse.
Key Features:
Reviews the legislative process and the general objectives of the directives
Provides a detailed article-by-article examination, clarifying procedures, scope, and implementation
Investigates the Court of Justice case law in the context of abuse of the Parent-Subsidiary Directive
Considers the policy underlying the wording of the different provisions and defines core principles, such as relief from double taxation
Practitioners involved in cross-border corporate income taxation in the EU, including tax lawyers and policymakers, will greatly benefit from the book's practical insights and critical recommendations. It is also an essential resource for students and scholars of European tax law and fiscal policy.
Key Features:
Reviews the legislative process and the general objectives of the directives
Provides a detailed article-by-article examination, clarifying procedures, scope, and implementation
Investigates the Court of Justice case law in the context of abuse of the Parent-Subsidiary Directive
Considers the policy underlying the wording of the different provisions and defines core principles, such as relief from double taxation
Practitioners involved in cross-border corporate income taxation in the EU, including tax lawyers and policymakers, will greatly benefit from the book's practical insights and critical recommendations. It is also an essential resource for students and scholars of European tax law and fiscal policy.
Reviews / Votes
'This highly recommended Commentary offers insightful explanations on the principal EU direct tax directives by leading tax scholars and experts. Harmoniously integrating rigorous analysis of practical interpretation issues, theoretical aspects and the case law of the Court of Justice, it stands as an essential reference for anyone applying, studying or researching on these directives.' -- Rita Szudoczky, WU Vienna University of Economics and Business, AustriaMore details
Series
Language
English
Place of publication
Cheltenham
United Kingdom
Target group
Professional and scholarly
Dimensions
Height: 244 mm
Width: 169 mm
ISBN-13
978-1-0353-3428-5 (9781035334285)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
Edited by Niels Bammens, Professor of Tax Law, Faculty of Law and Criminology and Filip Debelva, Professor of Tax Law, Faculty of Law and Criminology, KU Leuven, Belgium
Content
CONTENTS
PART I THE PARENT-SUBSIDIARY DIRECTIVE
The Parent-Subsidiary Directive: introduction and preamble 2
Niels Bammens and Filip Debelva
1 Article 1(1): material scope of application 9
Edoardo Traversa and Fabrizio Pascucci
2 Article 1(2)-4: abuse 29
Jean-Philippe Van West
3 Articles 2-3: personal scope of application of the directive 56
Jasper Korving
4 Article 4: treatment of dividends received 95
Joris Luts and Ward Willems
5 Article 4(2): hybrid entities and the avoidance of double taxation 139
Felix Daniel Martinez Laguna
6 Articles 5-7: taxation of outbound dividends 156
Cees Peters
7 Article 8: implementation 179
Filip Debelva
8 Article 9: repeal of directive 90/435/EEC 180
Filip Debelva
9 Article 10: entry into force 182
Filip Debelva
10 Article 11: addressees 183
Filip Debelva
PART II THE INTEREST AND ROYALTY DIRECTIVE
The interest and royalty Directive: introduction and preamble 185
Niels Bammens and Filip Debelva
11 Article 1: scope and procedure 196
Carla De Pietro
12 Article 2: definition of interest and royalties 225
Filip Debelva
13 Article 3: definition of company, associated company and permanent establishment 259
Christopher (Chris) Thompson
14 Article 4: exclusion of payments as interest or royalties 283
Niels Bammens
15 Article 5: abuse 299
Jean-Philippe Van West
16 Article 6: transitional rules for the Czech Republic, Greece, Spain, Latvia, Lithuania, Poland,
Portugal, and Slovakia 309
Niels Bammens
17 Article 7: implementation 315
Niels Bammens
18 Article 8: review 318
Niels Bammens
19 Article 9: delimitation clause 319
Niels Bammens
20 Article 10: entry into force 320
Niels Bammens
21 Article 11: addressees 321
Niels Bammens
Index 322
PART I THE PARENT-SUBSIDIARY DIRECTIVE
The Parent-Subsidiary Directive: introduction and preamble 2
Niels Bammens and Filip Debelva
1 Article 1(1): material scope of application 9
Edoardo Traversa and Fabrizio Pascucci
2 Article 1(2)-4: abuse 29
Jean-Philippe Van West
3 Articles 2-3: personal scope of application of the directive 56
Jasper Korving
4 Article 4: treatment of dividends received 95
Joris Luts and Ward Willems
5 Article 4(2): hybrid entities and the avoidance of double taxation 139
Felix Daniel Martinez Laguna
6 Articles 5-7: taxation of outbound dividends 156
Cees Peters
7 Article 8: implementation 179
Filip Debelva
8 Article 9: repeal of directive 90/435/EEC 180
Filip Debelva
9 Article 10: entry into force 182
Filip Debelva
10 Article 11: addressees 183
Filip Debelva
PART II THE INTEREST AND ROYALTY DIRECTIVE
The interest and royalty Directive: introduction and preamble 185
Niels Bammens and Filip Debelva
11 Article 1: scope and procedure 196
Carla De Pietro
12 Article 2: definition of interest and royalties 225
Filip Debelva
13 Article 3: definition of company, associated company and permanent establishment 259
Christopher (Chris) Thompson
14 Article 4: exclusion of payments as interest or royalties 283
Niels Bammens
15 Article 5: abuse 299
Jean-Philippe Van West
16 Article 6: transitional rules for the Czech Republic, Greece, Spain, Latvia, Lithuania, Poland,
Portugal, and Slovakia 309
Niels Bammens
17 Article 7: implementation 315
Niels Bammens
18 Article 8: review 318
Niels Bammens
19 Article 9: delimitation clause 319
Niels Bammens
20 Article 10: entry into force 320
Niels Bammens
21 Article 11: addressees 321
Niels Bammens
Index 322