This paper reports on an investigation of a recent decision by the European Court of Justice (ECJ) in case C-48/13, Nordea Bank Denmark, concerning the Danish rules for reincorporation of losses from permanent establishments situated in European Union/ European Economic Area (EU/EEA) member states other than Denmark. The article includes comments on various EU tax law aspects of the case - namely the restriction test applied by the ECJ, the justifications brought forward by the intervening governments and the question of proportionality - and examines the consequences of the Danish tax law going forward.
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. 1, last amended by Regulation (EC) No. 2017/492, OJ L 76, p. 13. are applicable; this is applicable also to Denmark, Finland and Sweden, which are EU Member States. Since 1 June 2012, the regulations are also applicable to Iceland and Norway, which are EFTA-countries. I limit myself here to the collection of social security contributions and do not treat the issue of social security benefits payment. A separate Nordic Convention on Social Security (2012) applies with respect to social security. The Convention entered into force on 1 May 2014 (Denmark, Finland
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existing provisions that give a preferential rate for dividends without the condition on holding a certain amount of the capital, such as provisions based on Article 10(2)(b) of the OECD Model Tax Convention, which provides for a tax rate limit of 15% to other payments of dividends by a company in one contracting state to a resident of the other contracting state ( OECD 2016 ; see para. 119).
According to Article 13 of the OECD Model Tax Convention, capital gains on shares in general are taxable only in the state of residence of the taxpayer, whereas gains derived from