The Common Consolidated Corporate Tax Base (CCCTB) and Third Countries
Edited by Michael Lang, Pasquale Pistone, Josef Schuch, Claus Staringer and Alfred Storck
Chapter 3: The meaning of ‘resident taxpayer’ and ‘non-resident taxpayer’ under the proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB)
This chapter covers the meaning of ‘resident taxpayer’ and ‘non-resident taxpayer’ under the proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB; hereinafter ‘the Proposal’) with a focus on the complex rules dealing with its personal scope. An analysis of the subject matter reveals a lack of clarity about the relationship between domestic taxing rules of the Member States and the provisions laid down by the Proposal, particularly with regard to com- panies that are tax resident in a third State. This is so notwithstanding the provision laid down by Article 7 of the Proposal, which stipulates that ‘national corporate tax arrangements’ cease to apply where a company ‘qualifies and opts’ for the common system. There is no clear distinction between tax rules and rules regarding the determination of the taxable base especially for third-State residents. Issues of interpretation also arise concerning the relationship between the provisions of the Proposal and tax treaties concluded by the Member States. Article 8 of the Proposal expressly provides that its rules override tax treaties concluded between Member States with the primary purpose of adopting definitions which are separate from those contained in double taxation agreements. As to treaties concluded by the Member States with third States, the working papers relating to the Proposal suggest an alleged potential conflict between CCCTB rules and tax treaty provisions, and this assumption influenced the Commission’s policy decision to apply the common system to companies that are residents and/or nationals of third countries.
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