Council Directive of 23 July 1990 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (90/435/EEC) (repealed)

Article 3 U.K.

1. [F1 For the purposes of applying this Directive:

(a) the status of parent company shall be attributed at least to any company of a Member State which fulfils the conditions set out in Article 2 and has a minimum holding of 20 % in the capital of a company of another Member State fulfilling the same conditions;

such status shall also be attributed, under the same conditions, to a company of a Member State which has a minimum holding of 20 % in the capital of a company of the same Member State, held in whole or in part by a permanent establishment of the former company situated in another Member State;

from 1 January 2007 the minimum holding percentage shall be 15 %;

from 1 January 2009 the minimum holding percentage shall be 10 %;

(b) ‘ subsidiary ’ shall mean that company the capital of which includes the holding referred to in (a).]

2. By way of derogation from paragraph 1, Member States shall have the option of:

• replacing, by means of bilateral agreement, the criterion of a holding in the capital by that of a holding of voting rights,

• not applying this Directive to companies of that Member State which do not maintain for an uninterrupted period of at least two years holdings qualifying them as parent companies or to those of their companies in which a company of another Member State does not maintain such a holding for an uninterrupted period of at least two years.

Textual Amendments

F1 Substituted by Council Directive 2003/123/EC of 22 December 2003 amending Directive 90/435/EEC on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States.