EU: report on functioning of the Interest & Royalties Directive

The European Commission has issued a report on the functioning of the Interest and Royalties Directive.  The report says that the overall implementation of the Directive has been satisfactory. However, suggestions for more uniform interpretation and legal certainty are proposed. 

The aim of the Directive is to eliminate double taxation on cross-border interest and royalty payments between associated companies. The report says that the overall implementation of the Directive has been satisfactory. However, suggestions for more uniform interpretation and legal certainty are proposed.

The report also looks at improvements to the existing text, including broadening the scope of the Directive. Discussions on the findings of the report at Council level should provide guidance to the Commission for a future amending legislative proposal. The Report can be found on the EC site.

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