| Abstract [eng] |
Regulation of interest and dividend taxation by the legal acts of the European Union is analysed in this paper. Taxation of interest in the European Union is regulated by the Council Directive of 2003/49/EC of 3 June, 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States, which exempts from a withholding tax interest paid by the subsidiary to its parent company. Taxation of dividends in the European Union is regulated by the Council directive of 1990/435/EEC of 23 July, 1990 on a common system of taxation applicable in the case of parent companies and subsidiaries of different Member States, which was adopted in order to harmonize the taxation of corporation tax, distributed between companies acting in different Member States, to reduce or eliminate double taxation. The European Court of Justice is also trying to form a tax policy of interest and dividends in the European Union, which is not always unanimous, but very important in reducing or eliminating double taxation between different Member States. The specificity of regulation of interest and dividend taxation in Lithuania is also analysed herein, concerning the payments of interest and dividends made between Lithuania and other Member States, also studying the problems of implementing the directives indicated above in the national legislation of Lithuania, because some rules of Lithuanian legislation of taxation of interest and dividends between Lithuania and other Member States one way or another discriminate foreign or Lithuanian investors. |
