No C 253/2  Official  Journal  of the European  Communities  5.  11. 75 
II 
(Preparatory  Acts) 
COMMISSION 
Proposal  for a Council  Directive  concerning  the harmonization  of systems  of company 
taxation  and  of withholding  taxes  on dividends 
(Submitted  to the Council  by the Commission  on 1 August  1975) 
THE  COUNCIL  OF THE  EUROPEAN  COMMUNITIES, 
Having  regard  to the  provisions  of the  Treaty 
establishing  the European  Economic  Community  and 
particularly  Article  100;  ' 
Having  regard  to the proposal  of the Commission; 
Having  regard  to the Opinion  of the Economic  and 
Social  Committee; 
Having  regard  to the  Opinion  of the  European 
Parliament; 
Whereas  the  free  circulation  of capital  within  the 
Community  and  the  elimination  of distortions  of 
competition  are  fundamental  objectives  of the 
Treaty; 
Whereas  the  present  systems  of company  taxation 
and of withholding  tax  on  dividends  have  the 
consequence  that  the  international  movements  of 
dividends  are  hampered  by  a  series  of 
discriminations,  double  taxations  and  complicated 
administrative  formalities  which  tend  to reinforce  the 
separation  of  financial  markets;  whereas, 
furthermore,  certain  differences  that  exist  between 
these  systems  may  give  rise  to abnormal  capital 
movements; 
Whereas,  in order  to ensure  greater  neutrality  in the 
conditions  of competition,  it is necessary  to reduce 
the differences  that  exist  in the taxation  of the profits 
of enterprises; 
Whereas  the harmonization  of systems  of company 
taxation  and  of withholding  taxes  is therefore 
essential;  whereas  this  harmonization  was  moreover set out  as an objective  by the  Council  in the 
Resolution  of 22 March  1971  relating  to the creation 
by stages  of economic  and monetary  union; 
Whereas,  in so far as company  taxation  is concerned, 
the imputation  system,  which  provides  a tax credit 
for the  recipient  of dividends,  is the most  suitable 
solution  for ensuring  neutrality  as regards  not  only 
the various  forms  of financing  enterprises  but  also 
the various  legal  forms  under  which  they  may  be 
organized,  for  reducing  the  opportunities  for  tax 
avoidance  by taxpayers  with  large  incomes  and  for 
developing  the share  market  through  attracting  new 
savers  to -this  form  of investment;  whereas  it has  in 
addition  certain  advantages  in relation  to fairness  of 
taxation;  whereas  it ought  therefore  to be adopted  as 
the common  system; 
Whereas  it is necessary,  for  reasons  of taxation 
neutrality,  that  the rates  of corporation  tax  and  of 
tax credit  shall  not  differ  too  much  from  one 
Member  State  to another; 
Whereas,  in order  to avoid  discrimination,  the tax 
credit  attached  to the dividends  of a company  ought 
to be granted  to all the recipients  of those  dividends, 
wherever  in the  Community  they  are  resident; 
whereas,  however,  exceptions  apart,  only  those 
recipients  who  are subject  to a tax on income  or on 
profits  ought  to be entitled  to this  tax credit;  whereas 
the tax credit  ought  to constitute  taxable  income  and 
ought  to be deducted  from  the  tax  due  by the 
recipient  of the dividend  and  paid  to him  in so far as 
it exceeds  the amount  of that  tax;  whereas,  to avoid 
complicated  formalities,  this  payment  ought  to be 
5.11.75 Official  Journal  of the  European  Communities No C 253/3 i 
made  by the  Member  State  in which  the  recipient  is 
resident; 
Whereas,  where  dividends  are  derived  from  profits 
that have  not  borne  corporation  tax  at the  normal 
rate,  it is necessary  to charge  a compensatory  tax or a 
non-repayable  advance  payment  of corporation  tax 
so as to offset  the  tax  credit  attached  to those 
dividends; 
Whereas,  where  a parent  corporation  redistributes 
dividends  received  from  a subsidiary,  the recipient  of 
those  dividends  ought  to be treated  as far as possible 
as if he  had  received  them  directly  from  the 
subsidiary;  whereas  this  principle  ought  also  to be 
applied  to  dividends  derived  from  permanent 
establishments; 
Whereas  in principle  there  are grounds  for requiring 
the budgetary  cost  of the  tax  credit  to be borne  by 
the State  where  the profits  from  which  the dividends 
are derived  have  been  subjected  to corporation  tax; 
whereas  nevertheless  there  need  be no objection  to 
Member  States  agreeing  bilaterally  to share  this  cost; 
Whereas  the  tax  credit  plays  the  part  of  a 
withholding  tax but  whereas  the rate  of this  credit  is 
insufficient  to discourage  recipients  of dividends  who 
have  large'  incomes  from  not  declaring  their 
dividends;  whereas  there  are  therefore  grounds  for 
providing  a common  withholding  tax  in order  to 
ensure  both  taxation  neutrality  and  fairness  of 
taxation;  whereas  a rate  of 25 % appears  appropriate 
for this  purpose;  whereas  it is nevertheless  not 
necessary  to charge  this  withholding  tax where  there 
is no risk  of tax evasion; 
Whereas  the  withholding  tax  ought  to be simply  a 
payment  on account  of the  final  tax liability  of the 
recipient  of the dividends;  whereas  in order  to avoid 
complicated  formalities,  any  excess  of tax  withheld 
ought  to be repaid  by the State  in which  the recipient 
is resident;  whereas  Member  States  must  nevertheless 
be permitted  to rectify  the budgetary  consequences  of 
applying  the common  withholding  tax system; 
Whereas  there  are  grounds  for  making  certain 
transitional  arrangements  to  facilitate  the 
introduction  in Member  States  of the common  system 
of company  taxation; 
Whereas,  in order  to ensure  taxation  neutrality,  it is 
essential  that  every  Member  State  shall  treat dividends  received  by its residents  in the  same  way, 
wherever  in the  Community  those  dividends  have 
their  source; 
Whereas  the  harmonization  of systems  of company 
taxation  and  of withholding  taxes  ought  to be 
brought  about  at the  latest  on  the  first  day  of 
January  of the third  year  following  the date  on which 
the present  Directive  is adopted, 
HAS  ADOPTED  THE  PRESENT  DIRECTIVE: 
I 
General  provisions  and  definitions 
Article  1 
1. The  Member  States  shall  adopt: 
— a common  imputation  system  of corporation  tax, 
— a common  system  of  withholding  tax  on 
dividends, 
in accordance  with  the  provisions  of the  following 
Articles. 
2. The  Member  States  shall  not  maintain  or 
introduce  any  other  provisions  the aim  of which  is to 
effect  a general  reduction  in the taxation  of dividends 
alone. 
Article  2 
1. For  the  purposes  of the  present  Directive,  the 
expression  or the term: 
— 'corporation  of a Member  State'  means  any 
corporation  which  fulfills  the conditions  laid  down  in 
Article  2 of Council  Directive  No o^ 
*—r~ 'parent  corporation'  means  any  corporation  that 
is recognized  as a parent  corporation  by virtue  of the 
provisions  of Council  Directive  No of 
— 'subsidiary'  means  any  corporation  that  is 
recognized  as a subsidiary  by  virtue  of Council 
Directive  No of 
— 'permanent  establishment'  means  any  fixed  place 
of business  recognized  as a permanent  establishment 
by virtue  of the  provisions  of Council  Directive  No 
of 
— 'dividend'  means  that  part  of the  profits  of any 
corporation  of  "a Member  State,  other  than  a 
No C 253/4 Official  Journal  of the European  Communities 5.11.75 
corporation  in liquidation,  distributed  by it by virtue 
of a proper  decision  of its competent  authorities  and 
divided  among  its members  in proportion  to their 
rights  as members  of the corporation;  distributions  of 
bonus  shares  are not regarded  as dividends  within  the 
meaning  of the present  directive, 
— 'tax  on income  or profits'  means  any  one  of the 
following  taxes  and  any  identical  or substantially 
similar  taxes  which  are imposed  in addition  to, or in 
place  of, the existing  taxes: 
Belgium 
impot  des personnes  physiques/personenbelasting, 
impot  des  personnes  morales/rechtspersonenbe-
lasting, 
impot  des societes  / vennootschapsbelasting; 
Denmark 
indkomstskat, 
selskabsskat; 
Germany 
Einkommensteuer, 
Korperschaftsteuer; 
France 
impot  sur le revenu, 
impot  sur les societes; 
Ireland 
income  tax, 
corporation  profits  tax; 
Italy 
imposta  sul reddito  delle  persone  fisiche, 
imposta  sul reddito  delle  persone  giuridiche; 
Luxembourg 
impot  sur le revenu  des personnes  physiques, 
impot  sur le revenu  des collectivites; 
Netherlands 
inkomstenbelasting, 
vennootschapsbelasting; 
United  Kingdom 
income  tax, 
corporation  tax. 2. The  provisions  of the  present  Directive  do not 
concern  dividends  that  the  final  beneficiary  receives 
through  the intermediary  of investment  funds  or unit 
trusts. 
II 
Provisions  relating  to corporation  tax 
Article  3 
1. Each  Member  State  shall  apply  a single  rate  of 
corporation  tax to the profits,  whether  distributed  or 
undistributed,  of its corporations.  This  rate,  called 
the normal  rate,  may  not  be lower  than  45 % nor 
higher  than  55 %. 
2. By  way  of derogation  from  the  provisions  of 
paragraph  1, a Member  State  may,  in particular  cases 
and for well  defined  reasons  of economic,  regional  or 
social  policy,  apply  a rate  different  from  the normal 
rate or complete  exemption,  either  permanently  or 
for a limited  period. 
If a Member  State  wishes  to avail  itself  of this  option, 
it shall  communicate  the proposed  provisions  to the 
Commission,  which  shall  make  its views  known  to 
the Member  State  concerned  within  30 days  of the 
receipt  of the  communication.  The  Member  State 
concerned  shall  not bring  into  force  the provisions  in 
question  until  this  period  has  expired  or after  the 
Commission  has made  its views  known  to it. 
3. Without  prejudice  to the application  of Article  9 
(1) of Council  Decision  No  74/120/EEC  of 18 
February  1974  on the attainment  of a high  degree  of 
convergence  of the economic  policies  of the Member 
States  of the  European  Economic  Community,  the 
provisions  of paragraphs  1 and  2 shall  not  be an 
obstacle  to the  application  by a Member  State,  for 
the purpose  of regulating  the economy,  of temporary 
increases  or reductions  of corporation  tax.  No 
account  shall  be  taken  of  these  increases  or 
reductions  for the purpose  of applying  the provisions 
of Article  8 (2). 
III 
Provisions  relating  to tax credit 
Article  4 
1. A  dividend  distributed  by a corporation  of a 
Member  State  shall  confer  on its recipient  a right  to a 
tax credit  at the  rate  referred  to in Article  8, 
provided: 
(a) that  he is resident  in a Member  State;  and 
(b) that  he is subject  to a tax on income  or profits  in 
such  a way  that  the full  amount  of the dividend 
5.11.75 Official  Journal  of the European  Communities No C 253/5 
increased  by the tax credit  is taken  into  account 
in arriving  at the amount  of his taxable  income 
or profits. 
2. By  way  of derogation  from  the  provisions  of 
paragraph  1 (b),  the tax credit  may  be granted  to a 
person  resident  in a Member  State  who  is exempt 
from  all tax on income  or profits  either  in respect  of 
the whole  of his income  or in respect  of that  part  of 
it consisting  of dividends,  provided  that  the person  in 
question  is an institution  which  is of public  interest. 
If use  is made  of this  option,  the tax credit  shall  be 
granted  whatever  the  Member  State  in which  the 
dividends  have  their  source. 
3. By  way  of derogation  from  the provisions  of 
paragraph  1 (b) the tax credit  may  be granted  to the 
recipient  of a dividend  where,  for  reasons  of 
administrative  convenience,  final  taxation  is levied, 
whether  by means  of a withholding  tax or otherwise, 
on the amount  of the dividend  not  increased  by the 
tax credit. 
4. The  Council,  acting  by qualified  majority  on a 
proposal  of the  Commission,  shall  in case  of need 
adopt  any  measures  necessary  for the application  of 
the provisions  of paragraph  2, first  subparagraph, 
and paragraph  3. 
Article  5 
The tax credit  shall  be set-off  against  the amount  of 
tax on income  or profits  to which  the recipient  of the 
dividend  is liable.  Where  the tax credit  exceeds  that 
amount,  the  excess  shall  be paid  to him  by the 
Member  State  which  charges  that  tax. 
Article  6 
By way  of derogation  from  the provisions  of Article  4 
(1), tax  credits  may,  pursuant  to double  taxation 
agreements,  be granted  in whole  or in part  to persons 
resident  in third  countries.  In no  circumstances, 
however,  may  such  persons  be  treated  more 
favourably  than  persons  resident  in the Community. 
The Member  States  shall  cooperate  with  each  other 
and with  the Commission  with  a view  to adopting  a 
common  position  on this  matter. 
Article  7 
If a corporation  of a Member  State  makes  a 
distribution  of profits  that  does  not  constitute  a dividend  within  the meaning  of Article  2 to a person 
resident  in another  Member  State,  the provisions  of 
Articles  4 and  5 shall  apply  in so far  as that 
distribution  is considered  under  the legislation  of the 
first Member  State  to be a dividend  conferring  a right 
to tax credit. 
Article  8 
1. Each  Member  State  shall  fix the rate  of the tax 
credit  attached  to the  dividends  distributed  by the 
corporations  of that  State. 
2. There  shall  be only  one  such  rate  in each. 
Member  State.  It shall  be determined  in such  a way 
that the tax credit  shall  be neither  lower  than  45 % 
nor higher  than  55 % of the amount  of corporation 
tax at the  normal  rate  on a sum  representing  the 
distributed  dividend  increased  by such  tax. 
Article  9 
1. In  so far as a corporation  distributes  dividends 
derived  from  profits  in respect  of which  it has  not 
borne  corporation  tax,  the  Member  State  of that 
corporation  shall  charge  a compensatory  tax equal  to 
the tax credit  attached  to those  dividends. 
Where  the  dividends  are  derived  from  profits  that 
have  borne  tax at a reduced  rate,  the compensatory 
tax shall  likewise  be  charged  but  may  to an 
appropriate  extent  be reduced. 
2. The  Member  States  shall  have  power  to charge 
the compensatory  tax  referred  to in paragraph  1, 
where  the dividends  are derived  from  profits  which 
have  borne  corporation  tax  but  which  have  been 
placed  to reserve  for more  than  five  years. 
3. The  provisions  of paragraphs  1 and  2 shall  not 
apply  where  the legislation  of the  Member  State  in 
question  provides  that  the  distribution  of dividends 
gives  rise  to an advance  payment  of corporation  tax 
at least  equal  to the  tax  credit,  provided  that  this 
advance  payment  is not repayable  and  that  it can  be 
deducted  from  the  corporation  tax  of accounting 
periods  ended  within  the previous  five  years. 
4. This  compensatory  tax or this  advance  payment 
in so far as it is not  effectively  deducted  from  the 
corporation  tax  of the  preceding  accounting  period 
or periods,  may  be repaid  to the  recipient  of the 
dividends  if he is not entitled  to the tax credit. 
No C 253/6 Official  Journal  of the  European  Communities 5.11.75 
If use  is made  of this  option,  the repayment  must  be 
made  regardless  of the  Member  State  in which  the 
recipient  of the dividends  is resident. 
Article  10 
1. Where  a parent  corporation  redistributes 
dividends  received  during  accounting  periods  ended 
not more  than  five  years  earlier  from  a subsidiary 
resident  in another  Member  State,  the amount  of the 
tax credit  attached  to  the  dividends  from  the 
subsidiary  shall  be included  in the  basis  used  in 
calculating  the  amount  of the  compensatory  tax  or 
advance  payment  referred  to in Article  9 to which  the 
parent  company  is liable  and  shall  then  be set-off 
against  the amount  of that  tax  or advance  payment, 
but any  excess  shall  not be repayable. 
2. Where  a corporation  of a Member  State  is not 
subject  to corporation  tax  on the dividends  which  it 
receives  from  a corporation  of that  State  and  it 
redistributes  those  dividends,  then: 
— either  the  set-off  rule  referred  to in paragraph  1 
shall  apply;  in this  case,  the  Member  State  in 
question  may  authorize  the  set-off  even  if the 
dividends  have  been  received  during  accounting 
periods  ended  more  than  five  years  earlier, 
— or, by way  of derogation  from  the provisions  of 
Article  9 (1)  and  (3)",  no compensatory  tax  or 
advance  payment  shall  be required. 
Article  11 
In so far as dividends  distributed  by a corporation  of 
a Member  State  are  derived  from  the  profits  of 
accounting  periods  ended  not  more  than  five  years 
earlier  of a permanent  establishment  situated  in 
another  Member  State: 
— the  profits  of the  permanent  establishment  shall 
confer  a right  to the  tax  credit  in force  in the 
State  where  the establishment  is situated  and  the 
rules  for corporations  laid  down  in Article  9 shall 
be applied  to this  establishment, 
— the  tax  credit  attached  to the  profits  of the 
permanent  establishment  shall  be included  in the 
basis  used  in calculating  the  amount  of the 
compensatory  tax or advance  payment  referred  to 
in Article  9 to which  the corporation  is liable  and 
shall  then  be set-off  against  the  amount  of that 
tax or advance  payment,  but  any  excess  shall  not 
be repayable. Article  12 
1. For  the  application  of  this  Directive,  the 
dividends  distributed  by a corporation  of a Member 
State  shall  be considered  to be derived: 
— firstly  from  those  profits  of the  last  completed 
accounting  period  which  confer  an entitlement  to 
relief  from  the  economic  double  taxation  of 
dividends,  the  parts  attributable  to  profits 
originating  within  that  State,  to dividends  from 
subsidiaries  in other  Member  States  and  to the 
profits  of permanent  establishments  in other 
Member  States  being  determined  on  a 
proportional  basis, 
— then,  if necessary,  from  those  profits  of 
accounting  periods  ended  not  more  than  five 
years  before  the  distribution  which  confer  an 
entitlement  to relief  from  the  economic  double 
taxation  of dividends,  the  parts  attributable  to 
profits  originating  within  that  State,  to dividends 
from  subsidiaries  in other  Member  States  and  to 
the profits  of permanent  establishments  in other 
Member  States  being  determined  on  a 
proportional  basis  by reference  to the  whole  of 
those  profits  and  dividends, 
— then,  if necessary,  from  those  profits  of 
accounting  periods  ended  more  than  five  years 
before  the  distribution  which  originated  within 
that State,  if they  confer  an entitlement  to relief 
from  the economic  double  taxation  of dividends, 
— finally,  if necessary,  from  any  other  sources. 
2. For  the  purpose  of this  Article,  the  expression 
'profits  which  confer  an entitlement  to relief  from  the 
economic  double  taxation  of dividends'  means  profits 
which,  if they  were  distributed,  would  not give  rise  to 
the charging  of the compensatory  tax or in respect  of 
which,  if they  were  distributed,  the advance  payment 
of corporation  tax referred  to in Article  9 (3),  would 
be effectively  deducted  from  the  tax  of  the 
accounting  period  or of previous  accounting  periods, 
and also  means  the profits  referred  to in Articles  10 
and 11. 
Article  13 
1. Subject  to the provisions  of paragraphs  3 and  4, 
the budgetary  cost  of the tax credit  shall  be borne  by 
the Member  State  of  the  corporation  which 
distributes  the dividends. 
2. The  provisions  of paragraph  1 shall  also  apply 
where  the recipient  of the  dividends  is an institution 
which  is of public  interest  and  which  is not  entitled 
to receive  the tax credit. 
3. Where  a parent  corporation  resident  in a 
Member  State  distributes  dividends  derived  from 
5. 11.75 Official  Journal  of the European  Communities No C 253/7 
dividends  of a subsidiary  resident  in' another  Member 
State,  the State  of the subsidiary  shall  pay  to the State 
of the  parent  corporation  the  amount  of the  tax 
credit  attached  to the dividends  of the subsidiary. 
This  payment  shall  not  exceed  the  amount  which 
would  result  from  applying  to the  dividends  of the 
subsidiary  the rate  of tax credit  in force  in the State 
of the  parent  corporation  at the  date  when  that 
corporation  makes  its distribution. 
4. Where  a corporation  of a Member  State 
distributes  dividends  derived  from  the  profits  of a 
permanent  establishment  situated  in another  Member 
State,  the State  in which  the permanent  establishment 
is situated  shall  pay  to the State  of the  corporation 
the amount  of the tax credit  attached  to those  profits. 
This  payment  shall  not  exceed  the  amount  which 
would  result  from  applying  to the  profits  of the 
permanent  establishment  the  rate  of tax  credit  in 
force  in the State  of the corporation  at the date  of the 
distribution, 
5. By  way  of derogation  from  the  provisions  of 
paragraphs  1 to 4, the Member  States  may  share  the 
cost of the  tax  credit,  under  bilateral  agreements, 
provided  that  such  agreements  shall  in no way  affect 
the rights  of recipients  of dividends  as set out in the 
present  directive. 
IV 
Provisions  relating  to the withholding  tax on 
dividends 
Article  14 
1. Subject  to the  provisions  of the  conventions 
concluded  between  Member  States  and  third 
countries,  each  Member  State  shall  impose  a 
withholding  tax of 25 % on the dividends  distributed 
by the corporations  of that  State,  no matter  who  is 
the recipient  of those  dividends. 
2. By  way  of derogation  from  the  provisions  of 
paragraph  1, no  Member  State  shall  impose  a 
withholding  tax  on  a dividend  distributed  by  a 
subsidiary  to a parent  corporation  resident  in any 
Member  State. 
3. By  way  of derogation  from  the  provisions  of 
paragraph  1 of this  Article,  the Member  States  shall 
have  power  not  to impose  a withholding  tax on the 
dividends  distributed  to their  own  residents: 
— where  the name  and  address  of the recipient  and 
the amount  of  the  dividends  received  are 
automatically  communicated  to  the  taxation 
administration,  or — where  the securities  representing  a corresponding 
share  in the capital  of the distributing  corporation 
are registered  in the names  of the holders. 
Article  IS 
Where  a Member  State  imposes  a withholding  tax on 
a distribution  of profits  which  does  not  constitute  a 
dividend  within  the  meaning  of Article  2, the 
provisions  of the  present  Directive  relating  to the 
withholding  tax shall  apply. 
Article  16 
1. The  tax withheld  under  Article  14 shall  be set-
off against  the  amount  of the  tax  on income  or 
profits  to which  the  recipient  of the  dividends  is 
liable  in respect  of them. 
The tax withheld  shall  be repaid  to the recipient  by 
the Member  State  which  charges  the tax  on income 
or profits  referred  to in the previous  subparagraph,  to 
the extent  that  it exceeds  the amount  of that  tax,  or 
where  the recipient  has no net liability  to tax. 
2. By  way  of derogation  from  the  provisions  of 
paragraph  1, a Member  State  shall  not  repay  the 
withholding  tax  to any  body  that  is not  subject  in 
that Member  State  to a tax  on income  or profits, 
where  it appears  that  such  repayment  would  be 
incompatible  with  the principle  of taxation  neutrality. 
The Council,  acting  by qualified  majority  on a 
proposal  of the  Commission,  shall  in case  of need 
adopt  any  measures  necessary  for the application  of 
this provision. 
Article  17 
1. In  so far  as withholding  tax  collected  by a 
Member  State  is set-off  or repaid  in another  Member 
State,  the State  which  collected  the withholding  tax 
shall  refund  it to that  other  Member  State. 
2. The  provisions  of paragraph  1 shall  also  apply 
where  the  tax  on income  or profits  is deemed  to 
correspond,  or is restricted,  to the  amount  of the 
withholding  tax. 
3. By  way  of derogation  from  the  provisions  of 
paragraph  1, the  Member  States  may  share  the 
amount  of the  withholding  tax,  under  bilateral 
agreements,  provided  that  such  agreements  shall  in 
no way  affect  the rights  of recipients  of dividends  as 
set out in the present  Directive. 
No C 253/8 Official  Journal  of the European  Communities 5. 11.75 
V 
Provisions  common  to tax credit  and  to the 
withholding  tax on dividends 
Article  18 
The provisions  of the present  Directive  shall  not  be 
an obstacle  to the application  of national  provisions 
whose  purpose  is to reduce  administrative  work  and 
which  provide  for the non-repayment  of tax credit  or 
of withholding  tax  where  the sums  in question  are 
very small. 
Article  19 
The provisions  of the present  Directive  shall  not  be 
an obstacle  to the application  of national  provisions 
whose  purpose  is to prevent  the  recipient  of a 
dividend  from  obtaining  an unjustified  advantage  and 
which  make  it possible  to refuse  the  set-off  or 
repayment  of tax credit  or withholding  tax. 
VI 
Transitional  provisions 
Article  20 
1. Where  a parent  corporation  redistributes,  after 
the date  referred  to in Article  22, a dividend  received 
from  a subsidiary  before  that  date,  the State  of the 
parent  corporation  shall  have  power  to charge  the 
compensatory  tax referred  to in Article  9(1). 
The provisions  of Article  10 (1) and  of Article  13 (3) 
shall  apply  only  in the event  of agreement  between 
the Member  State  of the parent  corporation  and  the 
Member  State  of the subsidiary. 
2. Where  a corporation  of a Member  State 
distributes,  after  the date  referred  to in Article  22, 
profits  earned  by a permanent  establishment  before 
that date,  the  State  of that  corporation  shall  have 
power  to charge  the compensatory  tax referred  to in 
Article  9(1). 
The provisions  of Article  11 and  Article  13 (4) shall 
only apply  in the  event  of agreement  between  the 
Member  State  of the  corporation  and  the  Member 
State  in which  the  permanent  establishment  is 
situated. 3. Within  three  months  from  the  date  of 
notification  of the  present  Directive  the  Member 
States  shall  communicate  to  the  Commission 
particulars  of the  provisions  referred  to in Article 
3 (2) first  subparagraph,  that  are  in force  on that 
date. 
Within  60 days  of the date  of that  communication  the 
Commission  shall  make  known  to the Member  States 
concerned  its  position  with  regard  to  those 
provisions. 
VII 
Final  provisions 
Article  21 
Without  prejudice  to the application  of the provisions 
of Article  92 of the EEC  Treaty,  a dividend  distributed 
to a person  resident  in a Member  State  by  a 
corporation  of another  Member  State  shall  not  be 
subjected,  in the  first  Member  State,  to any  less 
favourable  taxation  treatment  or  to any  more 
burdensome  requirement  connected  therewith  — 
other  than  a requirement  imposed  by  the  first 
Member  State  for  the  purposes  of Article  13 or 
Article  17  — than  if that  dividend  had  been 
distributed  by a corporation  of the  first  Member 
State. 
Article  22 
1. The  Member  States  shall  bring  into  force  the 
necessary  legislative  and  administrative  provisions  in 
order  to comply  with  the  provisions  of the  present 
Directive  not later  than  the first  day of January  of the 
third  year  following  the year  of its adoption,  and 
shall  immediately  communicate  them  to  the 
Commission. 
2. The  Member  States  shall  ensure  that  the texts  of 
any further  main  provisions  of national  law  that  they 
adopt  in the field  covered  by the present  Directive  are 
communicated  to the Commission. 
Article  23 
The present  Directive  is addressed  to the  Member 
States.