Judgment of the Court (Second Chamber) of 25 February 2010 (reference for a preliminary ruling from the Hoge Raad der Nederlanden — Netherlands) — X Holding B.V. v Staatssecretaris van Financiën

(Case C-337/08) (1)

(Articles 43 EC and 48 EC - Tax legislation - Corporation tax - Tax entity consisting of a resident parent company and one or more resident subsidiaries - Taxation of profits at parent-company level - Exclusion of non-resident subsidiaries)

2010/C 100/04

Language of the case: Dutch

Referring court

Hoge Raad der Nederlanden

Parties to the main proceedings

Applicant: X Holding B.V.

Defendant: Staatssecretaris van Financiën

Re:

Reference for a preliminary ruling — Hoge Raad der Nederlanden — Interpretation of Articles 43 EC and 48 EC — Legislation permitting resident parent companies to form a single entity, for tax purposes, with one or more resident subsidiaries, resulting in the taxation of the parent company in respect of the profits of that entity — Exclusion of non-resident subsidiaries from that arrangement

Operative part of the judgment

Articles 43 EC and 48 EC do not preclude legislation of a Member State which makes it possible for a parent company to form a single tax entity with its resident subsidiary, but which prevents the formation of such a single tax entity with a non-resident subsidiary, in that the profits of that non-resident subsidiary are not subject to the fiscal legislation of that Member State.

(1)  OJ C 272, 25.10.2008.