The European Commission, on August 22, took another step toward addressing concerns that the Netherlands’ corporate tax exemption for Dutch public enterprises violates state aid, asking interested parties to submit comments on the Dutch tax regime, pursuant to Article 108(2) of the Treaty on the Functioning of the European Union (TFEU).
The Commission maintains that the Dutch tax exemption granted to public undertakings constitutes state aid within the meaning of Article 107(1) TFEU and that since the measure pre-dates the entry into force of the EU State aid rules in the Netherlands, the aid constitutes existing aid. Further, the Commission says that none of the compatibility grounds laid down in Article 107(2) and (3) and Article 106(2) TFEU applies to the aid.
Interested parties have one month to submit comments.
Invitation to submit comments, European Commission Letter to the Netherlands (English). See also, July 9 European Commission release
