CELEX: 62016CA0398
Language: en
Date: 2018-02-22 00:00:00
Title: Joined Cases C-398/16 and C-399/16: Judgment of the Court (First Chamber) of 22 February 2018 (requests for a preliminary ruling from the Hoge raad der Nederlanden — Netherlands) — X BV (C-398/16), X NV (C-399/16) v Staatssecretaris van Financiën (Reference for a preliminary ruling — Articles 49 and 54 TFEU — Freedom of establishment — Tax legislation — Corporation tax — Advantages linked to the formation of a single tax entity — Exclusion of cross-border groups)

16.4.2018   
            
            
               EN
            
            
               Official Journal of the European Union
            
            
               C 134/7
            
         Judgment of the Court (First Chamber) of 22 February 2018 (requests for a preliminary ruling from the Hoge raad der Nederlanden — Netherlands) — X BV (C-398/16), X NV (C-399/16) v Staatssecretaris van Financiën
   (Joined Cases C-398/16 and C-399/16) (1)
   
   ((Reference for a preliminary ruling - Articles 49 and 54 TFEU - Freedom of establishment - Tax legislation - Corporation tax - Advantages linked to the formation of a single tax entity - Exclusion of cross-border groups))
   (2018/C 134/09)
   Language of the case: Dutch
   
      Referring court
   
   Hoge raad der Nederlanden
   
      Parties to the main proceedings
   
   
      Applicants: X BV (C-398/16), X NV (C-399/16)
   
      Defendant: Staatssecretaris van Financiën
   
      Operative part of the judgment
   
   
               1.
            
            
               Articles 49 and 54 TFEU must be interpreted as precluding national legislation, such as that at issue in the main proceedings, pursuant to which a parent company established in a Member State is not allowed to deduct interest in respect of a loan taken out with a related company in order to finance a capital contribution to a subsidiary established in another Member State, whereas if the subsidiary were established in the same Member State, the parent company could avail itself of that deduction by forming a tax-integrated entity with it.
            
         
               2.
            
            
               Articles 49 and 54 TFEU must be interpreted as not precluding national legislation, such as that at issue in the main proceedings, pursuant to which a parent company established in a Member State is not allowed to deduct from its profits capital losses derived from fluctuations in the exchange rate, in connection with the value of its shares in a subsidiary established in another Member State, where the same legislation does not provide, symmetrically, for tax to be levied on capital gains derived from those fluctuations.
            
         
      (1)  OJ C 371, 10.10.2016.