BETA

Activities of Liem HOANG NGOC related to 2011/0058(CNS)

Plenary speeches (1)

2016/11/22
Dossiers: 2011/0058(CNS)

Shadow reports (1)

2016/11/22
Committee: ECON
Dossiers: 2011/0058(CNS)
Documents: PDF(373 KB) DOC(550 KB)

Amendments (94)

Liem HOANG NGOC

Proposal for a directive
Recital 4

(4) A system allowing companies to treat the Union as a single market for the purpose of corporate tax would facilitate cross-border activity for companies resident in the Union and would promote the objective of making the Union a more competitive location for investment internationally. ~~Such a system would best be achieved by enabling~~In order for such a system to be as effective and fair as possible, companies and groups of companies with a taxable presence in more than one Member State ~~to settle their tax affairs in the Union according~~should be subject to a single set of rules for calculation of the tax base and should be enabled to deal with a single tax administration ('one-stop-shop'). ~~These rules should also be made available to entities subject to corporate tax in the Union which do not form part of a group.~~

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 5

(5) Since differences in rates of taxation do not give rise to the same obstacles, the system (the Common Consolidated Corporate Tax Base (CCCTB)) need not affect the discretion of Member States regarding their national rate(s) of company taxation.deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 8

~~(8) Since such a system is primarily designed to serve the needs of companies that operate across borders, it should be an optional scheme, accompanying the existing national corporate tax systems.~~deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 4

(4) A system allowing companies to treat the Union as a single market for the purpose of corporate tax would facilitate cross-border activity for companies resident in the Union and would promote the objective of making the Union a more competitive location for investment internationally. Such a system would best ~~be achieved by enabling~~and most equitably be achieved by requiring companies and groups of companies with a taxable presence in more than one Member State to ~~settle their tax affairs in the Union according to~~comply with a single set of rules for calculation of the tax base and by enabling them to deal with a single tax administration ('one-stop-shop'). ~~These rules should also be made available to entities subject to corporate tax in the Union which do not form part of a group.~~

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Recital 16

(16) Eligibility for consolidation (group membership) should be determined in accordance with a two-part test based on (i) control (more than 50% of voting rights) and (ii) ownership (more than 75% of equity) or rights to profits (more than 75% of rights giving entitlement to profit). Such a test ensures a high level of economic integration between group members, as indicated by a relation of control and a high level of participation. The two thresholds should be met throughout the tax year; otherwise, the company should leave the group immediately. There should also be a ~~nin~~twelve-month minimum requirement for group membership.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 23

(23) Groups of companies should be able to deal with a single tax administration ('principal tax authority'), which should be that of the Member State in which the parent company of the group ('principal taxpayer') is resident for tax purposes. This Directive should also lay down procedural rules for the administration of the system. It should also provide for an advance ruling mechanism. Audits should be initiated and coordinated by the principal tax authority but the authorities of any Member State in which a group member is subject to tax may request the initiation of an audit. The competent authority of the Member State in which a group member is resident or established may challenge a decision of the principal tax authority concerning ~~the notice to opt or~~ an amended assessment before the courts of the Member State of the principal tax authority. Disputes between taxpayers and tax authorities should be dealt with by an administrative body which is competent to hear appeals at first instance according to the law of the Member State of the principal tax authority.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 25

(25) In order to ensure uniform conditions for the implementation of this Directive as regards the annual adoption of a list of third country company forms which meet the requirements set out in this Directive, laying down rules on the calculation of the labour, asset and sales factors, the allocation of employees and payroll, assets and sales to the respective factor as well as the valuation of assets for the asset factor and the adoption of ~~a standard form of the notice to opt and of~~ rules on electronic filing, on the form of the tax return, on the form of the consolidated tax return and on the required supporting documentation, powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 28 February 2011 laying down the rules and general principles concerning mechanisms for control by ~~the~~ Member States of the Commission'’s exercise of implementing powers.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 5

(5) Since differences in rates of taxation do not give rise to the same obstacles, the system (the Common Consolidated Corporate Tax Base (CCCTB)) need not affect the discretion of Member States regarding their national rate(s) of company taxation.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Recital 25 a (new)

(25a) In order to ensure that the application of the system [the Common Consolidated Corporate Tax Base (CCCTB)] does not cause distortion in the way in which capital and profits are allocated within the Union, it is essential to limit disparities in corporate tax rates by introducing a minimum level of taxation for all Member States.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 1

This Directive establishes a system for a common base for the taxation of certain companies and groups of companies and lays down rules relating to the calculation and use of that base. It also establishes rules on the setting of a minimum level of corporate taxation in Member States.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 2 – title

~~Eligible companies~~Companies subject to the system provided for by this Directive

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 3 – title

~~Eligible third country company forms~~Company forms subject to the system provided for by this Directive

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 4 – point 1

1l) ‘'taxpayer’' means a company which ~~has opted to apply,~~is subject to the system provided for by this Directive;

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 4 – point 3

(3) ‘non-taxpayer’ means a company which is ~~ineligible to opt or has not opted to apply~~not subject to the system provided for by this Directive;

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Chapter 3 – title

~~OPTING FO~~DETERMINATION OF PLACE OF RESIDENCE FOR TAX PURPOSES AND LAW APPLICABLE UNDER THE SYSTEM PROVIDED FOR BY THIS DIRECTIVE

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 8

~~(8) Since such a system is primarily designed to serve the needs of companies that operate across borders, it should be an optional scheme, accompanying the existing national corporate tax systems.~~deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 6 – title

~~Opting~~Place of residence for tax purposes

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 1

1. A company to which this Directive applies which is resident for tax purposes in a Member State ~~may opt for~~shall be subject to the system provided for by this Directive under the conditions provided for therein.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 2

2. A company to which this Directive applies which is not resident for tax purposes in a Member State ~~may opt for~~shall be subject to the system provided for by this Directive under the conditions laid down therein in respect of a permanent establishment maintained by it in a Member State.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 6

6. A company resident in a Member State which ~~opts for~~is subject to the system provided for by this Directive shall be subject to corporate tax under that system on all income derived from any source, whether inside or outside its Member State of residence.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 7

7. A company resident in a third country which ~~opts for~~is subject to the system provided for by this Directive shall be subject to corporate tax under that system on all income from an activity carried on through a permanent establishment in a Member State.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 7

~~Where a~~A company ~~qualifies and opts for~~subject to the system provided for by this Directive it shall cease to be subject to the national corporate tax arrangements in respect of all matters regulated by this Directive unless otherwise stated.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 14 – paragraph 1 – point j

(j) taxes listed in Annex III~~, with the exception of excise duties imposed on energy products, alcohol and alcoholic beverages, and manufactured tobacco~~.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 14 – paragraph 2

2. Notwithstanding point (j) of paragraph 1 a Member State may provide for deduction of one or more of the taxes listed in Annex III. In the case of a group, any such deduction shall be applied to the apportioned share of the group members resident or situated in that Member State.deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Chapter 8 – title

PROVISIONS ON ENTRY TO ~~AND EXIT FROM~~ THE SYSTEM PROVIDED FOR BY THIS DIRECTIVE

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 44

When a taxpayer ~~opts to apply~~is subject to the system provided for by this Directive, all assets and liabilities shall be recognised at their value as calculated according to national tax rules immediately prior to the date on which it begins to apply the system, unless otherwise stated in this Directive.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 46 – paragraph 1

Revenues and expenses which pursuant to Article 24(2) and (3) are considered to have accrued or been incurred before the taxpayer ~~opted into~~entered the system provided for by this Directive but were not yet included in the tax base under the national corporate tax law previously applicable to the taxpayer shall be added to or deducted from the tax base, as the case may be, in accordance with the timing rules of national law.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 47 – paragraph 1

1. Provisions, pension provisions and bad- debt deductions provided for in Articles 25, 26 and 27 shall be deductible only to the extent that they arise from activities or transactions carried out after the taxpayer ~~opted into~~entered the system provided for by this Directive.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 47 – paragraph 2

2. Expenses incurred in relation to activities or transactions carried out before the taxpayer ~~opted into~~entered the system but for which no deduction had been made shall be deductible.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 47 – paragraph 3

3. Amounts already deducted prior to ~~opting into~~entering the system may not be deducted again.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 16

(16) Eligibility for consolidation (group membership) should be determined in accordance with a two-part test based on (i) control (more than 50% of voting rights) and (ii) ownership (more than 75% of equity) or rights to profits (more than 75% of rights giving entitlement to profit). Such a test ensures a high level of economic integration between group members, as indicated by a relation of control and a high level of participation. The two thresholds should be met throughout the tax year; otherwise, the company should leave the group immediately. There should also be a ~~nin~~twelve-month minimum requirement for group membership.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 48

Where a taxpayer incurred losses before ~~opting into~~entering the system provided for by this Directive which could be carried forward under the applicable national law but had not yet been set off against taxable profits, those losses may be deducted from the tax base to the extent provided for under that national law.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 49

General rule for opting-out of the system When a taxpayer leaves the system provided for by this Directive, its assets and liabilities shall be recognised at their value as calculated according to the rules of the system, unless otherwise stated in this Directive.Article 49 deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 50

Fixed assets depreciated in a pool When a taxpayer leaves the system provided for by this Directive, its asset pool under the system provided for by this Directive shall be recognised, for the purpose of the national tax rules subsequently applicable, as one asset pool which shall be depreciated on the declining balance method at an annual rate of 25%.Article 50 deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 51

Long-term contracts on leaving the system After the taxpayer leaves the system, revenues and expenses arising from long- term contracts shall be treated in accordance with the national corporate tax law subsequently applicable. However, revenues and expenses already taken into account for tax purposes in the system provided for by this Directive shall not be taken into account again.Article 51 deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 52

Provisions and deductions on leaving the After the taxpayer leaves the system provided for by this Directive, expenses which have already been deducted in accordance with Articles 25 to 27 may not be deducted again.Article 52 deleted system

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 53

Losses incurred by the taxpayer which have not yet been set off against taxable profits under the rules of the system provided for by this Directive shall be carried forward in accordance with national corporate tax law.Article 53 deleted Losses on leaving the system

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 57 a (new)

Article 57a No retroactivity Consolidation shall apply only to taxable profits which accrue after the entry into force of this Directive.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 58 – paragraph 2

2. Notwithstanding paragraph 1, a taxpayer shall become a member of a group on the date when the thresholds of Article 54 are reached. The thresholds must be met for at least ~~nin~~twelve consecutive months, failing which a taxpayer shall be treated as if it had never having become a member of the group.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 66 – point a

(a) if the taxpayer ~~remains in the system provided for by this Directive but outside~~no longer forms part of a group, the losses shall be carried forward and be set off according to Article 43;

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 66 – point c

(c) if the taxpayer leaves the system, the losses shall be carried forward and be set off according to the national corporate tax law which becomes applicable, as if those losses had arisen while the taxpayer was subject to that law.deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 23

(23) Groups of companies should be able to deal with a single tax administration ('principal tax authority'), which should be that of the Member State in which the parent company of the group ('principal taxpayer') is resident for tax purposes. This Directive should also lay down procedural rules for the administration of the system. It should also provide for an advance ruling mechanism. Audits should be initiated and coordinated by the principal tax authority but the authorities of any Member State in which a group member is subject to tax may request the initiation of an audit. The competent authority of the Member State in which a group member is resident or established may challenge a decision of the principal tax authority concerning ~~the notice to opt or~~ an amended assessment before the courts of the Member State of the principal tax authority. Disputes between taxpayers and tax authorities should be dealt with by an administrative body which is competent to hear appeals at first instance according to the law of the Member State of the principal tax authority.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 73 – paragraph 1 – point a

(a) a tax on profits, under the general regime in that third country, at a statutory corporate tax rate lower than 470% of the average statutory corporate tax rate applicable in the Member States;

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Recital 25

(25) In order to ensure uniform conditions for the implementation of this Directive as regards the annual adoption of a list of third country company forms which meet the requirements set out in this Directive, laying down rules on the calculation of the labour, asset and sales factors, the allocation of employees and payroll, assets and sales to the respective factor as well as the valuation of assets for the asset factor and the adoption of ~~a standard form of the notice to opt and of~~ rules on electronic filing, on the form of the tax return, on the form of the consolidated tax return and on the required supporting documentation, powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) 182/2011 of the European Parliament and of the Council of 28 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Recital 25 a (new)

(25a) In order to ensure that the application of the system [the Common Corporate Tax Base (CCTB)] does not lead to distortions in the way in which capital and profits are allocated within the European Union, it is essential to limit corporate tax rate disparities by introducing a minimum taxation level for all Member States.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 81 – paragraph 1 – point a

(a) a tax on profits is provided for, under the general regime in the third country, at a statutory corporate tax rate lower than 470% of the average statutory corporate tax rate applicable in the Member States;

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 81 – paragraph 3

3. Notwithstanding paragraph 1, interest paid to an entity resident in a third country with which there is no agreement on the exchange of information comparable to the exchange of information on request provided for in Directive 2011/16/EU shall be deductible, in an amount not exceeding that which would be stipulated between independent enterprises, where one of the following conditions is met: (a) the amount of that interest is included in the tax base as income of the associated enterprise in accordance with Article 82; (b) the interest is paid to a company whose principal class of shares is regularly traded on one or more recognized stock exchanges; (c) the interest is paid to an entity engaged, in its country of residence, in the active conduct of a trade or business. This shall be understood as an independent economic enterprise carried on for profit and in the context of which officers and employees carry out substantial managerial and operational activities.deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 82 – paragraph 1 – point b

(b) under the general regime in the third country, profits are taxable at a statutory corporate tax rate lower than 470% of the average statutory corporate tax rate applicable in the Member States, or the entity is subject to a special regime that allows for a substantially lower level of taxation than that of the general regime;

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 94 – paragraph 1

1. Land and other non-depreciable fixed tangible assets shall be valued at their ~~original cost~~net accounting value.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 104

1. A single taxpayer shall opt for the system provided for by this Directive by giving notice to the competent authority of the Member State in which it is resident or, in respect of a permanent establishment of a non-resident taxpayer, that establishment is situated. In the case of a group, the principal taxpayer shall give notice, on behalf of the group, to the principal tax authority. Such notice shall be given at least three months before the beginning of the tax year in which the taxpayer or the group wishes to begin applying the system. 2. The notice to opt shall cover all group members. However, shipping companies subject to a special taxation regime may be excluded from the group. 3. The principal tax authority shall transmit the notice to opt immediately to the competent authorities of all Member States in which group members are resident or established. Those authorities may submit to the principal tax authority, within one month of the transmission, their views and any relevant information on the validity and scope of the nArticle 104 deleted Notice to opt.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 1 – paragraph 1

This Directive establishes a system for a common base for the taxation of certain companies and groups of companies and lays down rules relating to the calculation and use of that base. It also establishes rules for setting a minimum level of corporate tax in the Member States.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 105

1. When the notice to opt has been accepted, a single taxpayer or a group, as the case may be, shall apply the system provided for by this Directive for five tax years. Following the expiry of that initial term, the single taxpayer or the group shall continue to apply the system for successive terms of three tax years unless it gives notice of termination. A notice of termination may be given by a taxpayer to its competent authority or, in the case of a group, by the principal taxpayer to the principal tax authority in the three months preceding the end of the initial term or of a subsequent term. 2. Where a taxpayer or a non-taxpayer joins a group, the term of the group shall not be affected. Where a group joins another group or two or more groups merge, the enlarged group shall continue to apply the system until the later of the expiry dates of the terms of the groups, unless exceptional circumstances make it more appropriate to apply a shorter period. 3. Where a taxpayer leaves a group or a group terminates, the taxpayer or taxpayers shall continue to apply the system for the remainder of the current term of the gArticle 105 deleted Term of a Group.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 106

Information in the notice to opt The following information shall be included in the notice to opt: (a) the identification of the taxpayer or of the members of the group; (b) in respect of a group, proof of fulfilment of the criteria laid down in Articles 54 and 55; (c) identification of any associated enterprises as referred to in Article 78; (d) the legal form, statutory seat and place of effective management of the taxpayers; (e) the tax year to be applied. The Commission may adopt an act establishing a standard form of the notice to opt. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 131(2).Article 106 deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 107

1. The competent authority to which the notice to opt is validly submitted shall examine whether, on the basis of the information contained in the notice, the group fulfils the requirements of this Directive. Unless the notice is rejected within three months of its receipt, it shall be deemed to have been accepted. 2. Provided that the taxpayer has fully disclosed all relevant information in accordance with Article 106, any subsequent determination that the disclosed list of group members is incorrect shall not invalidate the notice to opt. The notice shall be corrected, and all other necessary measures shall be taken, from the beginning of the tax year when the discovery is made. Where there has not been full disclosure, the principal tax authority, in agreement with the other competent authorities concerned, may invalidate the originalArticle 107 deleted Control of the notice to opt.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 124 – paragraph 1 – subparagraph 1 – point a

~~(a) a decision rejecting a notice to opt;~~deleted

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 2 – title

~~Eligible companies~~Companies subject to the system provided for by this Directive

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 126 a (new)

CHAPTER XVII A MINIMUM LEVEL OF CORPORATE TAXATION Article 126a Rules on setting corporate tax rates Member States shall set their national rates of corporate taxation in such a way that they are not more than 3% below the mean legal rate of corporate taxation applicable in the Member States. The mean statutory corporate tax rate applicable in the Member States shall be published by the Commission annually. It shall be calculated as an arithmetic mean.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Article 126b Safeguard clause relating to actual rates of corporate taxation Member States shall refrain from adopting measures which reduce their actual rate of corporate taxation.

2011/12/15
Committee: IMCO

Liem HOANG NGOC

Proposal for a directive
Article 3 – title

~~Eligible t~~Third country company forms subject to the system provided for by this Directive

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 4 – paragraph 1 – point 1

1) 'taxpayer' means a company which ~~has opted to apply,~~is subject to the system provided for by this Directive;

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 4 – paragraph 1 – point 3

3) 'non-taxpayer' means a company which is ~~ineligible to opt or has not opted to apply~~not subject to the system provided for by this Directive;

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 6 – title

~~Opting~~Residence for tax purposes

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 1

1. A company to which this Directive applies which is resident for tax purposes in a Member State ~~may opt for~~shall be subject to the system provided for by this Directive under the conditions provided for therein.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 2

2. A company to which this Directive applies which is not resident for tax purposes in a Member State ~~may opt for~~shall be subject to the system provided for by this Directive under the conditions laid down therein in respect of a permanent establishment maintained by it in a Member State.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 6

6. A company resident in a Member State which ~~opts for~~is subject to the system provided for by this Directive shall be subject to corporate tax under that system on all income derived from any source, whether inside or outside its Member State of residence.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 6 – paragraph 7

7. A company resident in a third country which ~~opts for~~is subject to the system provided for by this Directive shall be subject to corporate tax under that system on all income from an activity carried on through a permanent establishment in a Member State.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 7 – paragraph 1

~~Where a~~A company ~~qualifies and opts for~~subject to the system provided for by this Directive it shall cease to be subject to the national corporate tax arrangements in respect of all matters regulated by this Directive unless otherwise stated.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 14 – paragraph 1 – point j

j) taxes listed in Annex III~~, with the exception of excise duties imposed on energy products, alcohol and alcoholic beverages, and manufactured tobacco~~.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 14 – paragraph 2

2. Notwithstanding point (j) of paragraph 1 a Member State may provide for deduction of one or more of the taxes listed in Annex III. In the case of a group, any such deduction shall be applied to the apportioned share of the group members resident or situated in that Member State.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Chapter 8 – title

PROVISIONS ON ENTRY TO ~~AND EXIT FROM~~ THE SYSTEM PROVIDED FOR BY THIS DIRECTIVE

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 44 – paragraph 1

When a taxpayer ~~opts to apply~~is subject to the system provided for by this Directive, all assets and liabilities shall be recognised at their value as calculated according to national tax rules immediately prior to the date on which it begins to apply the system, unless otherwise stated in this Directive.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 47 – paragraph 1

1. Provisions, pension provisions and bad- debt deductions provided for in Articles 25, 26 and 27 shall be deductible only to the extent that they arise from activities or transactions carried out after the taxpayer ~~opted into~~entered the system provided for by this Directive.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 48 – paragraph 1

Where a taxpayer incurred losses before ~~opting into~~entering the system provided for by this Directive which could be carried forward under the applicable national law but had not yet been set off against taxable profits, those losses may be deducted from the tax base to the extent provided for under that national law.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 49

General rule for opting-out of the system When a taxpayer leaves the system provided for by this Directive, its assets and liabilities shall be recognised at their value as calculated according to the rules of the system, unless otherwise stated in this Directive.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 50

Fixed assets depreciated in a pool When a taxpayer leaves the system provided for by this Directive, its asset pool under the system provided for by this Directive shall be recognised, for the purpose of the national tax rules subsequently applicable, as one asset pool which shall be depreciated on the declining balance method at an annual rate of 25%.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 51

Long-term contracts on leaving the system After the taxpayer leaves the system, revenues and expenses arising from long- term contracts shall be treated in accordance with the national corporate tax law subsequently applicable. However, revenues and expenses already taken into account for tax purposes in the system provided for by this Directive shall not be taken into account again.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 52

Provisions and deductions on leaving the system After the taxpayer leaves the system provided for by this Directive, expenses which have already been deducted in accordance with Articles 25 to 27 may not be deducted again.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 53

Losses on leaving the system Losses incurred by the taxpayer which have not yet been set off against taxable profits under the rules of the system provided for by this Directive shall be carried forward in accordance with national corporate tax law.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 57 a (new)

Article 57a Non-retroactivity Consolidation shall only apply to taxable profits earned from entry into force of this directive.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 58 – paragraph 2

2. Notwithstanding paragraph 1, a taxpayer shall become a member of a group on the date when the thresholds of Article 54 are reached. The thresholds must be met for at least twelve nine consecutive months, failing which a taxpayer shall be treated as if it had never become a member of the group.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 66 – paragraph 1 – point a

a) if the taxpayer ~~remains in the system provided for by this Directive but outside a~~no longer remains in any group, the losses shall be carried forward and be set off according to Article 43;

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 66 – paragraph 1 – point c

c) if the taxpayer leaves the system, the losses shall be carried forward and be set off according to the national corporate tax law which becomes applicable, as if those losses had arisen while the taxpayer was subject to that law.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 73 – paragraph 1 – point a

a) a tax on profits, under the general regime in that third country, at a statutory corporate tax rate lower than 470% of the average statutory corporate tax rate applicable in the Member States;

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 81 – paragraph 1 – point a

a) a tax on profits is provided for, under the general regime in the third country, at a statutory corporate tax rate lower than 470% of the average statutory corporate tax rate applicable in the Member States;

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 81 – paragraph 3

3. Notwithstanding paragraph 1, interest paid to an entity resident in a third country with which there is no agreement on the exchange of information comparable to the exchange of information on request provided for in Directive 2011/16/EU shall be deductible, in an amount not exceeding that which would be stipulated between independent enterprises, where one of the following conditions is met: a) the amount of that interest is included in the tax base as income of the associated enterprise in accordance with Article 82; b) the interest is paid to a company whose principal class of shares is regularly traded on one or more recognized stock exchanges; c) the interest is paid to an entity engaged, in its country of residence, in the active conduct of a trade or business. This shall be understood as an independent economic enterprise carried on for profit and in the context of which officers and employees carry out substantial managerial and operational activities.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 82 – paragraph 1 – point b

b) under the general regime in the third country, profits are taxable at a statutory corporate tax rate lower than 470% of the average statutory corporate tax rate applicable in the Member States, or the entity is subject to a special regime that allows for a substantially lower level of taxation than that of the general regime;

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 94 – paragraph 1

1. Land and other non-depreciable fixed tangible assets shall be valued at their ~~original cost~~net accounting value.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 104

Notice to opt 1. A single taxpayer shall opt for the system provided for by this Directive by giving notice to the competent authority of the Member State in which it is resident or, in respect of a permanent establishment of a non-resident taxpayer, that establishment is situated. In the case of a group, the principal taxpayer shall give notice, on behalf of the group, to the principal tax authority. Such notice shall be given at least three months before the beginning of the tax year in which the taxpayer or the group wishes to begin applying the system. 2. The notice to opt shall cover all group members. However, shipping companies subject to a special taxation regime may be excluded from the group. 3. The principal tax authority shall transmit the notice to opt immediately to the competent authorities of all Member States in which group members are resident or established. Those authorities may submit to the principal tax authority, within one month of the transmission, their views and any relevant information on the validity and scope of the notice to opt.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 105

Term of a Group 1. When the notice to opt has been accepted, a single taxpayer or a group, as the case may be, shall apply the system provided for by this Directive for five tax years. Following the expiry of that initial term, the single taxpayer or the group shall continue to apply the system for successive terms of three tax years unless it gives notice of termination. A notice of termination may be given by a taxpayer to its competent authority or, in the case of a group, by the principal taxpayer to the principal tax authority in the three months preceding the end of the initial term or of a subsequent term. 2. Where a taxpayer or a non-taxpayer joins a group, the term of the group shall not be affected. Where a group joins another group or two or more groups merge, the enlarged group shall continue to apply the system until the later of the expiry dates of the terms of the groups, unless exceptional circumstances make it more appropriate to apply a shorter period. 3. Where a taxpayer leaves a group or a group terminates, the taxpayer or taxpayers shall continue to apply the system for the remainder of the current term of the group.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 106

Information in the notice to opt The following information shall be included in the notice to opt: a) the identification of the taxpayer or of the members of the group; b) in respect of a group, proof of fulfilment of the criteria laid down in Articles 54 and 55; c) identification of any associated enterprises as referred to in Article 78; d) the legal form, statutory seat and place of effective management of the taxpayers; e) the tax year to be applied. The Commission may adopt an act establishing a standard form of the notice to opt. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 131(2).deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 107

Control of the notice to opt 1. The competent authority to which the notice to opt is validly submitted shall examine whether, on the basis of the information contained in the notice, the group fulfils the requirements of this Directive. Unless the notice is rejected within three months of its receipt, it shall be deemed to have been accepted. 2. Provided that the taxpayer has fully disclosed all relevant information in accordance with Article 106, any subsequent determination that the disclosed list of group members is incorrect shall not invalidate the notice to opt. The notice shall be corrected, and all other necessary measures shall be taken, from the beginning of the tax year when the discovery is made. Where there has not been full disclosure, the principal tax authority, in agreement with the other competent authorities concerned, may invalidate the original notice to opt.deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 124 – paragraph 1 – subparagraph 1 – point a

~~a) a decision rejecting a notice to opt;~~deleted

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 126 a (new)

CHAPTER XVIIa MINIMUM CORPORATE TAX RATE Article 126a Rules for determining corporate tax rates Member States shall set their national corporate tax rates no more than 3% below the average statutory rate in the Member States. The average statutory corporate tax rate applicable in the Member States shall be published by the Commission annually. It shall be calculated on the basis of an arithmetic mean.

2011/12/12
Committee: ECON

Liem HOANG NGOC

Proposal for a directive
Article 126 b (new)

Article 126b Safeguard clause in respect of effective corporate tax Member States shall not adopt measures leading to a reduction in their effective corporate tax. .

2011/12/12
Committee: ECON