Prof. Dr. J.N. Bouwman

Since the introduction of a corporate tax in the Netherlands this tax has known a group regime, the so called ‘fiscale eenheid’ (Section 2.9, Corporate Tax Act 1969 (CTA)). This regime is based on consolidation and taxes the group companies that are part of it as a single entity (full consolidation). One of the requirements that must be met to enjoy this group regime is that the parent company and its subsidiaries are residents of the Netherlands. This means that the advantages of the group regime are in principle not attainable with respect to foreign group members. The disputes that are discussed in this blog are about whether this outcome of the Dutch group regime is in line with the freedom of establishment of Article 49 and 54 TFEU (Treaty on the Functioning of the European Union). To put it all in perspective, first an overview will be given of the main advantages of the Dutch corporate tax group regime.