Brussels, 20/11/2015 (Agence Europe) - On Thursday 19 November, the European Commission sent a reasoned opinion to Spain calling on the country to change its rules on the taxation of certain income received by foreign non-profit entities and of certain contributions to these entities.
Currently, Spanish non-profit entities can benefit from certain tax exemptions, as can taxpayers who support them financially, in respect of their contributions. These tax exemptions are not applied to foreign non-profit entities which receive comparable income in Spain, but are established in another member state of the EU or of the European Economic Area and have no branch in Spain.
The Commission considers that this practice is discriminatory and constitutes a restriction on the free movement of capital as interpreted by the Court of Justice of the EU (C-386/04 and C-318/07). Spain now has two months to come into line with EU law, or the case could be brought before the Court of Justice. (Original version in French by Elodie Lamer)
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