EU Commission requests FINLAND to bring its rules on tax deductibility of group contributions in line with EU law

The Commission decided today to send a reasoned opinion to Finland regarding its legislation providing for deductibility of group contributions between affiliated companies only if the company receiving the contribution is resident in Finland.

Such group contributions made to affiliated companies in other EU/EEA States are not deductible even in situations where these cover definitive losses incurred by the latter.

The lack of deductibility in such situations constitutes a restriction on the freedom of establishment (Article 49 TFEU and Article 31 EEA).

If Finland does not provide a tangible proposal to remedy the infringement within the next four months, the Commission may decide to bring the case before the Court of Justice of the EU.

Daniel Ferrie

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