Council of the European Union 23 July 1990, Council Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States

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The Council Directive 90/435/EEC establishes a common system of taxation for parent companies and subsidiaries across different Member States to promote fair competition and facilitate corporate groupings within the European Community. Key provisions include the exemption of profits distributed from subsidiaries to parent companies from withholding tax, with specific exceptions for certain Member States, and the requirement for Member States to implement necessary laws by January 1, 1992. The directive aims to eliminate tax-related disadvantages that hinder cross-border corporate cooperation, thereby enhancing productivity and competitive strength in the internal market.AI