Luxembourg comments on the Commission's decision in the McDonald's case

Luxembourg has taken note of the Commission's decision in the McDonald’s case, which confirms the absence of a selective treatment and state aid incompatible with the internal market within the meaning of Article 107 (1) of the Treaty on the Functioning of the European Union.

Luxembourg has cooperated fully with the Commission throughout its investigation and welcomes the Commission's recognition of the steps taken by the Luxembourg authorities to avoid comparable cases in the future.

Minister of Finance Pierre Gramegna comments: "I am pleased that the Commission notes that the application of the rules in force at the time was in conformity with EU law. This decision strengthens Luxembourg's position that while the application of the rules in force at the time might have resulted in a situation that no longer reflects the current spirit of the national and international tax framework, such an application does not constitute state aid."

Luxembourg fully supports the OECD's BEPS (base erosion and profit shifting) project and actively contributed to the adoption of the anti-tax avoidance directives (ATAD) on the European level, in the spirit of the level playing field. In this context, the Government has submitted to Parliament a draft bill transposing the first ATAD directive into Luxembourg law and amending provisions of the tax legislation, with the aim of henceforth preventing double non-taxation situations such as raised by the Commission.

Press release by the Ministry of Finance

Last update