CELEX: 62006CJ0248
Failure of a Member State to fulfil obligations
Freedom of establishment
Freedom to provide services
Restrictions
Research and development
Rules for the deduction of costs incurred abroad

Failure of a Member State to fulfil obligations – Infringement of Articles 43 EC, 48 EC and 49 EC and Articles 31 EEA and
36 EEA – Rules for deducting costs for research and development and technological innovation incurred abroad more rigorous
than those applicable to costs incurred in Spain.
Operative part
The Court:
1.
Declares that, by maintaining in force rules for the deduction of costs relating to research and development and technological
innovation which are less favourable in respect of costs incurred abroad than costs incurred in Spain – such rules deriving
from Article 35 of the Law on corporation tax, as amended by Royal Legislative Decree 4/2004 of 5 March 2004 – the Kingdom
of Spain has failed to fulfil its obligations under Articles 43 EC and 49 EC on freedom of establishment and the freedom to
provide services, and the corresponding articles in the Agreement on the European Economic Area of 2 May 1992, namely Articles
31 and 36 of that Agreement;
2.
Orders the Kingdom of Spain to pay the costs.