Judgment — ECLI:EU:C:2006:519
Date: 2006-09-07
Language of the case: Portuguese
Court formation: First Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation;Indirect taxation
Concepts: Indirect taxation on the raising of capital
Procedure: Reference for a preliminary ruling
Origin: Portugal

Summary of the Judgment Tax provisions – Harmonisation of laws – Indirect taxes on the raising of capital – Capital duty levied on capital companies (Council Directive 69/335, Art. 12(1)(a)) Directive 69/335 concerning indirect taxes on the raising of capital, as amended by Directive 85/303, does not preclude national legislation which provides, in respect of the drawing-up of a notarial act recording a disposal of shares which is not linked to an increase in capital, for the charging of fees which are fixed by reference to a flat rate and/or the value of the shares being disposed of. A tax constituted by such fees falls within the exception provided for in Article 12(1)(a) of Directive 69/335, which allows a tax to be charged in the event of a transfer of securities and, consequently, collection thereof is not contrary to the directive. The fact that the amount of those fees increases directly and without an upper limit in proportion to the value of the shares disposed of is not such as to affect this conclusion. By providing that the duties to which it refers may be ‘charged at a flat rate or not’, Article 12(1)(a) of Directive 69/335 allows the Member States freely to determine the rate thereof. (see paras 21-25, operative part)