{
  "url": "https://openlegislation.uk/eu-directive-2014-86/introduction",
  "json_url": "https://openlegislation.uk/eu-directive-2014-86/introduction.json",
  "legislation": "eudr/2014/86",
  "legislation_title": "Council Directive 2014/86/EU of 8 July 2014 amending Directive 2011/96/EU on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States",
  "legislation_url": "https://openlegislation.uk/eu-directive-2014-86",
  "path": "introduction",
  "kind": "introduction",
  "number": null,
  "heading": "Introductory text",
  "text": "Council Directive 2014/86/EU\nof 8 July 2014\namending Directive 2011/96/EU on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States\nTHE COUNCIL OF THE EUROPEAN UNION,\nHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 115 thereof,\nHaving regard to the proposal from the European Commission,\nAfter transmission of the draft legislative act to the national parliaments,\nHaving regard to the opinion of the European Parliament,\nHaving regard to the opinion of the European Economic and Social Committee,\nActing in accordance with a special legislative procedure,\nWhereas:\n(1)\nCouncil Directive 2011/96/EU exempts dividends and other profit distributions paid by subsidiary companies to their parent companies from withholding taxes and eliminates double taxation of such income at the level of the parent company.\n(2)\nThe benefits of Directive 2011/96/EU should not lead to situations of double non-taxation and, therefore, generate unintended tax benefits for groups of parent companies and subsidiaries of different Member States when compared to groups of companies of the same Member State.\n(3)\nFor the purpose of avoiding situations of double non-taxation deriving from mismatches in the tax treatment of profit distributions between Member States, the Member State of the parent company and the Member State of its permanent establishment should not allow those companies to benefit from the tax exemption applied to received distributed profits, to the extent that such profits are deductible by the subsidiary of the parent company.\n(4)\nIt is appropriate to update Part A of Annex I to Directive 2011/96/EU to include other forms of companies made subject to corporation tax in Poland and other forms of companies which have been introduced in the company law of Romania.\n(5)\nDirective 2011/96/EU should therefore be amended accordingly,\nHAS ADOPTED THIS DIRECTIVE:",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Opinion of 2 April 2014 (not yet published in the Official Journal)."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Opinion of 25 March 2014 (not yet published in the Official Journal)."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Council Directive 2011/96/EU of 30 November 2011 on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (OJ L 345, 29.12.2011, p. 8)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudr/2014/86/introduction",
    "retrieved_at": "2026-11-01T15:21:41.875651+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}