Part 1 - AL-Tax

Chapter 8Table 8.2 Fiscal consolidation in European Member States, 2005CountriesRules for fiscal consolidation of subsidiariesAustria Fiscal consolidation if holding 50%BelgiumNo fiscal consolidationCyprus No fiscal consolidation but group losses relief if holding 75%Czech Republic No fiscal consolidationDenmarkFiscal consolidation if holding 50% one vote, extendable to foreignsubsidiariesEstoniaNo fiscal consolidationFinland Fiscal consolidation if holding 90%FranceFiscal consolidation if holding 50%, extendable to foreign subsidiariesGermany Domestic fiscal consolidation if holding 50%GreeceNo fiscal consolidationHungaryNo fiscal consolidationIreland No fiscal consolidation but group losses relief possible if holding 75%Italy Domestic and worldwide fiscal consolidation if holding 50%LatviaNo fiscal consolidation but domestic and EU-wide (or treaty partners)group losses relief possible if holding 90%LithuaniaNo fiscal consolidationLuxembourg Fiscal consolidation if holding 95%Malta No fiscal consolidation but group loss relief possible if holding 51%.The Netherlands Fiscal consolidation if holding 95%, extendable to foreign companiesunder conditionsPoland Fiscal consolidation if holding 95%Portugal Fiscal consolidation if holding 90%Slovak Republic No fiscal consolidationSlovenia Fiscal consolidation if holding 90%Spain Fiscal consolidation if holding 75%Sweden Fiscal consolidation if holding 90%UK No fiscal consolidation but group loss relief possible if holding 75%Source:IBFD (2005). Note that all fiscal consolidation schemes are optional.all possibilities available in their respective state of residence to deduct lossesand no possibilities remained for those losses to be taken into account in thefuture, either by the subsidiary or by a third party. Although the ruling does notgo as far as allowing companies to freely practice cross-border loss offsetting, thedecision is a step towards ending discrimination.191