Tax Plan 2019 and Implementation ATAD 1 adopted by Lower House of Parliament

On 15 November 2018 the Lower House of Parliament adopted several draft legislative proposals in relation to the Tax Plan 2019 and the implementation of the EU Anti-Tax Avoidance Directive 1 (ATAD 1). Some useful clarifications were provided during the discussions in Parliament.

The proposals were adopted substantially in its original form, except for a change of the corporate income tax rate of a low-tax jurisdiction for the purposes of the CFC rules, from – initially 7% - to 9%. Political discussions in the Senate on the legislative proposals are scheduled for 10 and 11 December 2018 with voting to take place on 18 December 2018.

It is noted that the Senate does not have the right to amend legislative proposals, but only may approve or reject same. It is expected that the Senate will vote in favor of the legislative proposals.