# C_2013171EN.01000202.xml

| 15.6.2013 | EN | Official Journal of the European Union | C 171/2 |
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15.6.2013

EN

Official Journal of the European Union

C 171/2

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Judgment of the Court (Second Chamber) of 25 April 2013 — European Commission v Kingdom of Spain

(Case C-64/11) (1)

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(Failure of a Member State to fulfil its obligations - Freedom of establishment - Article 49 TFEU - Restrictions - Tax legislation - Immediate taxation of unrealised gains - Transfer of the place of residence of a company, termination of the activities of a permanent establishment or transfer of the assets of that establishment)

2013/C 171/03

Language of the case: Spanish

Parties

Parties

Applicant: European Commission (represented by: J. Baquero Cruz and R. Lyal, acting as Agents)

Applicant:

Defendant: Kingdom of Spain (represented by: A. Rubio González and M. Muñoz Pérez, acting as Agents)

Defendant:

Interveners in support of the defendant: Federal Republic of Germany (represented by: T. Henze and K. Petersen, acting as Agents), French Republic (represented by: G. de Bergues and N. Rouam, acting as Agents), Italian Republic (represented by: G. Palmieri, acting as Agent, and P. Gentili, avvocato dello Stato), Kingdom of the Netherlands (represented by: M. Bulterman, C. Wissels and J. Langer, acting as Agents), Portuguese Republic (represented by: L. Inez Fernandes, acting as Agent), Republic of Finland (represented by: M. Pere, acting as Agent), Kingdom of Sweden (represented by: A. Falk, acting as Agent), United Kingdom of Great Britain and Northern Ireland (represented by: L. Seeboruth, acting as Agent)

Interveners in support of the defendant:

Re:

Re:

Failure of a Member State to fulfil its obligations — Infringement of Article 49 TFEU and Article 31 EEA — Tax provisions pursuant to which companies ceasing to have their tax residence in Spain or transferring their assets to another State must immediately pay an exit tax

Operative part of the judgment

Operative part of the judgment

The Court:

| 1. | Declares that, by adopting Article 17(1)(a) and (c) of the re-cast text of the Law on corporate taxation, approved by Royal Legislative Decree 4/2004 of 5 March 2004 (Real Decreto Legislativo 4/2004 por el que se aprueba el Texto Refundido de la Ley del Impuesto sobre Sociedades), pursuant to which, in the case of a transfer to another Member State of the place of residence of a company established in Spain and of the assets of a permanent establishment situated in Spain, unrealised gains form part of the tax base for the financial year, whereas those assets have no immediate consequences in terms of tax if those transactions tax place in Spanish territory, the Kingdom of Spain has failed to fulfil its obligations under Article 49 TFEU; |
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1.

Declares that, by adopting Article 17(1)(a) and (c) of the re-cast text of the Law on corporate taxation, approved by Royal Legislative Decree 4/2004 of 5 March 2004 (Real Decreto Legislativo 4/2004 por el que se aprueba el Texto Refundido de la Ley del Impuesto sobre Sociedades), pursuant to which, in the case of a transfer to another Member State of the place of residence of a company established in Spain and of the assets of a permanent establishment situated in Spain, unrealised gains form part of the tax base for the financial year, whereas those assets have no immediate consequences in terms of tax if those transactions tax place in Spanish territory, the Kingdom of Spain has failed to fulfil its obligations under Article 49 TFEU;

| 2. | Dismisses the action as to the remainder; |
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2.

Dismisses the action as to the remainder;

| 3. | Orders the Kingdom of Spain to pay its own costs; |
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3.

Orders the Kingdom of Spain to pay its own costs;

| 4. | Orders the Federal Republic of Germany, the French Republic, the Italian Republic, the Kingdom of the Netherlands, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden, and the United Kingdom of Great Britain and Northern Ireland to pay their own costs. |
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4.

Orders the Federal Republic of Germany, the French Republic, the Italian Republic, the Kingdom of the Netherlands, the Portuguese Republic, the Republic of Finland, the Kingdom of Sweden, and the United Kingdom of Great Britain and Northern Ireland to pay their own costs.

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(1)  OJ C 113, 9.4.2011.

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