CELEX: 62018CA0389
Language: en
Date: 2019-12-19 00:00:00
Title: Case C-389/18: Judgment of the Court (Seventh Chamber) of 19 December 2019 (request for a preliminary ruling from the Tribunal de première instance francophone de Bruxelles — Belgium) — Brussels Securities SA v État Belge (Reference for a preliminary ruling — Common system of taxation applicable in the case of parent companies and subsidiaries of different Member States — Directive 90/435/EEC — Prevention of double taxation — First indent of Article 4(1) — Prohibition on taxing profits received — Inclusion of the dividend distributed by the subsidiary in the parent company’s tax base — Deduction of the dividend distributed from the parent company’s tax base and the indefinite carrying forward of the surplus to the following tax years — The order in which tax deductions on profits are to be applied — Loss of a tax advantage)

24.2.2020   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 61/7
            
         
      Judgment of the Court (Seventh Chamber) of 19 December 2019 (request for a preliminary ruling from the Tribunal de première instance francophone de Bruxelles — Belgium) — Brussels Securities SA v État Belge
      (Case C-389/18) (1)
      
      (Reference for a preliminary ruling - Common system of taxation applicable in the case of parent companies and subsidiaries of different Member States - Directive 90/435/EEC - Prevention of double taxation - First indent of Article 4(1) - Prohibition on taxing profits received - Inclusion of the dividend distributed by the subsidiary in the parent company’s tax base - Deduction of the dividend distributed from the parent company’s tax base and the indefinite carrying forward of the surplus to the following tax years - The order in which tax deductions on profits are to be applied - Loss of a tax advantage)
      (2020/C 61/08)
      Language of the case: French
      
         Referring court
      
      Tribunal de première instance francophone de Bruxelles
      
         Parties to the main proceedings
      
      
         Applicant: Brussels Securities SA
      
         Defendant: État Belge
      
         Operative part of the judgment
      
      Article 4(1) of Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States, as amended by Council Directive 2003/123/EC of 22 December 2003 must be interpreted as precluding legislation of a Member State which provides that dividends received by a parent company from its subsidiary must first be included in the tax base of the parent company, before 95 % of the amount of the dividends is then deducted, and any surplus may be carried forward to subsequent tax years indefinitely, that deduction having priority over another tax deduction which may only be carried forward for a limited time.
      
         (1)  OJ C 294, 20.8.2018.