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Link: https://curia.europa.eu/jcms/upload/docs/application/pdf/2021-09/cp210158en.pdf

Court of Justice of the European Union

PRESS RELEASE No 158/21

Luxembourg, 16 September 2021

Judgment in Case C-337/19 P Commission v Belgium and Magnetrol International

Tax exemptions granted by Belgium to multinational companies by way of rulings: the Commission correctly found that there was an aid scheme The Court of Justice sets aside the judgment delivered on 14 February 2019 by the General Court and refers the case back to the latter for it to rule on other aspects of the case Since 2005, Belgium has applied a system of exemptions for the excess profit of Belgian entities which form part of multinational corporate groups. Those entities were able to obtain a tax ruling from the Belgian tax authorities, if they could demonstrate the existence of a new situation, such as a reorganisation leading to the relocation of the central entrepreneur to Belgium, the creation of jobs, or investments. In that context, profits regarded as being ‘excess’, in that they exceeded the profit that would have been made by comparable standalone entities operating in similar circumstances, were exempted from corporate income tax. (...)