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The role of BEPS as an accelerator for corporate capital gains taxation reforms in the European Union Cover

The role of BEPS as an accelerator for corporate capital gains taxation reforms in the European Union

Nordic Tax Journal
Volume 2020 (2020): Issue 1 (January 2020)
By: Anu Torkkeli and  Matti Kukkonen  
Open Access
|Mar 2021

Figures & Tables

j_ntaxj-2020-0002_tab_003

Country (Nordic or European Union)Signature (×)Entry into force (×)
Austria××
Belgium××
Bulgaria×
Croatia×
Cyprus××
Czech Republic×
Denmark××
Estonia×
Finland××
France××
Germany×
Greece×
Hungary×
Iceland (non-EU member state)××
Ireland××
Italy×
Latvia××
Lithuania××
Luxembourg××
Malta××
Netherlands××
Norway (non-EU member state)××
Poland××
Portugal××
Romania×
Slovakia××
Slovenia××
Spain×
Sweden××

Comparison of the corporate capital gains taxation models in the Nordic countries (2020)

DenmarkFinlandIcelandNorwaySweden
Tax rate2220222221.4
Capital gains tax treatment in normal caseOrdinary incomeOrdinary incomeOrdinary incomeOrdinary incomeOrdinary income
Capital gains tax exemptionSale of subsidiary and group sharesSale of sharesSale of sharesSale of sharesSale of business-related shares

j_ntaxj-2020-0002_tab_001

RuleImplementation status
Interest limitation rule (EBITDA rule)Not all Member States have implemented ATAD's EBITDA rule, and there are Member States that instead apply their domestic EBITDA rule. Austria, Ireland and Slovenia do not apply EBITDA rule. Slovakia, Germany and Spain apply a domestic EBITDA rule.
Exit taxationMember States had to introduce exit taxation rules or amend their existing ones in line with ATAD's exit taxation rules by December 31st, 2019. As per authors’ understanding, there are no deviations to the fulfillment of this deadline requirement.
General Anti-Abuse RuleMember States had to implement a GAAR by December 31st, 2018. As per authors’ understanding, there are no deviations to the fulfillment of this deadline requirement.
Controlled foreign company rulesMember States shall implement ATAD's CFC rules by December 31st, 2018. Member States that do not apply CFC rules have to introduce ATAD's CFC rules in their tax legislation. France, Spain and Germany did not implement ATAD's CFC rules.
Hybrid mismatchesMember States have to implement ATAD II, in principle, by December 31st, 2019. The following Member States have adopted hybrid mismatches:

  • Draft ATAD II bill: Austria, Croatia, Czech Republic, France, Ireland, Luxembourg, Poland, Portugal, Slovenia, Sweden

  • Adopted ATAD II bill (application per January 1st, 2020): Belgium, Bulgaria, Denmark, Estonia, Italy, Netherlands, Slovakia

DOI: https://doi.org/10.2478/ntaxj-2020-0002 | Journal eISSN: 2246-1809
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Language: English
Page range: 15 - 28
Submitted on: Feb 11, 2020
Accepted on: Oct 28, 2020
Published on: Mar 11, 2021
Published by: DJØF Publishing, Nordic Tax Research Council
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year
Keywords:
Taxation,
international taxation,
features of good tax systems,
tax exemption,
participation exemption,
income,
capital,
capital gains,
corporate reorganizations,
group of companies,
tax reform,
lock-in,
digital taxation,
real-time taxation,
accrual taxation,
base erosion and profit shifting (BEPS)
Related subjects:
Business and economics,
Business management,
Business law,
Political economics,
Public finance and fiscal theory,
Law,
History, philosophy and sociology of law,
Public law,
Tax and accounting law

© 2021 Anu Torkkeli, Matti Kukkonen, published by DJØF Publishing, Nordic Tax Research Council
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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