The draft bill n°7318 (Bill) implementing the first Anti-Tax Avoidance Directive1 (ATAD) has been adopted on 18 December 20182. Furthermore, pursuant to the comments expressed by the Chamber of Commerce and Council of State on respectively 5 October 2018 and 13 November 2018, a motion has been voted on 18 December 2018 to add the option stated in article 4 (1) a of the ATAD but not included in the Bill. This option related to the interest limitation rule will allow tax integrated groups to compute their additional borrowing costs and EBITDA at the level of the integrated group. The motion also requires to further analyse the situation of the securitization vehicles within the scope of the ATAD.
The new provisions will be applicable as of 1 January 2019 except for the exit tax rule which will enter into force on 1 January 2020. The final Bill also states that the modified §6 Steueranspassungsgesetz related to the general anti-abuse rule will apply as from tax year 2019.
As a reminder, the Bill introduces the following provisions:
Download the full article under resources.
1 Directive (EU) 2016/1164 of 12 July 2016
2 In principle, all government and parliament bills must go through two successive votes by the Chamber on the law as a whole. There must be an interval of at least three months between the two votes. However, Parliament may exempt itself from the second vote to the extent the Council of State agrees with this exemption which is most often the case in practice.