Amendments To The Parent Subsidiary Directive Adopted



March 20, 2015

Tags: EU | Parent Subsidiary Directive

The EU-Council of Economic and Finance Ministers have adopted the amendments to the Parent Subsidiary Directive, challenging hybrid financial instruments which have the characteristics of both debt and equity.

A payment on hybrid financial instruments could be eligible for tax deduction in the state of source, and at the same time, be tax exempt in the state of residence (double non-taxation). The adopted amendments provide for a mandatory limitation of the exemption in the state of residence, to the extent the (interest) payments are deductible in the state of source.

All EU member states are required to implement the amendments in their domestic legislation no later than 31 December 2015.

Our services?

Read more about our services

View all our services

← Friggo Kraaijeveld Speaks At Conference In Cyprus OECD Releases first BEPS Recommendations To G-20 →

To your inbox

Stay in the know of the latest accountancy and business news via the KC Newsletter

Contact us

Do you have any questions or require our advice? Feel free to contact us

More KC stories

📊 6 Common accounting mistakes — and how to avoid them. Part 2.

📊 6 Common accounting mistakes — and how to avoid them. Part 2.

Accounting plays a critical role in the success and sustainability of any business. Even minor errors can lead to major financial setbacks or compliance risks. At KC Accounting, we’ve outlined 10 of the most common mistakes businesses make—and how to prevent them: 4....

📊 6 Common accounting mistakes — and how to avoid them. Part 1.

📊 6 Common accounting mistakes — and how to avoid them. Part 1.

Accounting plays a critical role in the success and sustainability of any business. Even minor errors can lead to major financial setbacks or compliance risks. At KC Accounting, we’ve outlined 10 of the most common mistakes businesses make—and how to prevent them: 1....

Compilation for companies: challenges and solutions

Compilation for companies: challenges and solutions

At KC Accounting, we understand the unique challenges that arise when preparing financial statements for large enterprises. Here are the key challenges companies face when preparing financial compilations and our effective solutions: 1. The complexity of multiple...