Direct tax: Difference between revisions

Tax policy in the [[European Union]] (EU) consists of two components: direct taxation, which remains the sole responsibility of member states, and [[indirect taxation]], which affects free movement of goods and the freedom to provide services. With regard to [[European Union direct taxes]], Member States have taken measures to prevent tax avoidance and double taxation. EU direct taxation covers, regarding companies, the following policies: the common consolidated corporate tax base, the common system of taxation applicable in the case of parent companies and subsidiaries of different member states (to avoid [[withholding tax]] when the dividend qualifies for application of the EC Parent-Subsidiary Directive,<ref>[https://books.google.com/books?id=t0Z_Jla7D1gC&dqq=salvador+trinxet&source=bl&ots=4y2M7NB-c4&sig=xosb_2rlC-Q3B5DuIYCkdsgXezc&hl=es&sa=X&ei=wQFNUPDjI4HQ9ASr_ICoBA&ved=0CD0Q6AEwBTgK Parent Subsidiary Directive, by Salvador Trinxet Llorca] ''See.'' Charles Edward Andrew Lincoln IV, ''Is Incorporation Really Better Than Central Management and Control for Testing Corporate Residency? An Answer to Corporate Tax Evasion and Inversion'', 43 Ohio N.U.L. Rev. 359 (2017). </ref> the financial transaction tax, interest and royalty payments made between associated companies and elimination of double taxation if the payment qualifies for application of the EC Interest and Royalties Directive.<ref>[https://books.google.com/books?id=abgHFE7omKwC&pg=PA52&lpg=PA52&dq=trinxet+interest+royalty&sourcepg=bl&ots=4elhxsLoum&sig=Kg7r1sPymxDSgfvu7pGJQrduacQ&hl=es&sa=X&ei=oGFNUO2hJJPu8ATCqYDYDQ&sqi=2&redir_esc=y#v=onepage&q=trinxet%20interest%20royalty&f=falsePA52 European Union Direct Taxes, by Salvador Trinxet Llorca]</ref> Regarding direct taxation for individuals, the policies cover taxation of savings income, dividend taxation of individuals and tackling tax obstacles to the cross-border provision of occupational pensions.