Subject of the case
Operative part
Subject of the case
Re:
Preliminary ruling – Bundesfinanzhof – Interpretation of Articles 56 EC, 57(1) EC and 58 EC – Deduction from the taxable profits of a German company of losses resulting from the activity of a permanent establishment in a non-member country – Deduction refused on the basis of a bilateral double taxation convention concluded with that non-member country.
Operative part
Operative part:
A national system of taxation under which a company having its head office in a Member State, when determining its results, cannot deduct losses incurred by an establishment in a non-Member State fundamentally affects the exercise of the freedom of establishment within the meaning of Articles 43 EC to 48 EC. Those provisions cannot be relied upon in a situation involving such an establishment in a non-Member State.