European Commission concludes on investigation into Luxembourg’s tax treatment of McDonald’s under EU state aid regulations, September 2018

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Category: EU State Aid, Hearings and Investigations, Tax Avoidance Schemes | Tag: , , , , , , ,
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Following an investigation into Luxembourg’s tax treatment of McDonald’s under EU state aid regulations since 2015, the EU Commission concluded that the tax rulings granted by Luxembourg to McDonald’s in 2009 did not provide illegal state aid.

According to the Commission, the law allowing McDonald’s to escape taxation on franchise income in Luxembourg – and the US – did not amount to an illegal selective advantage under EU law.

The double non-taxation of McDonald’s franchise income was due to a mismatch between the laws of the United States and Luxembourg.

See the 2015 announcement of formal opening of the investigations into McDonald’s tax agreements with Luxembourg from the EU Commission

EU vs McDonal IP-18-5831_EN

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