According to the new provisions of Law No. 23/053 of November 30, 2023, applicable from January 1, 2026, the notion of "Related Parties" has been significantly extended.
By GOLFF SARL
TAX NEWS 📖] According to the new provisions of Law No. 23/053 of November 30, 2023, applicable from January 1, 2026, the notion of "Related Parties" has been significantly extended.
Indeed, from now on, two entities will be deemed to be linked when:
1. One of them:
A. holds, directly or indirectly, the relative majority of the share capital of the other. Indirect control is characterised by a chain, without any particular limit, of parallel (several entities holding shareholdings in the same entity) and/or vertical (an entity successively controlling one or more entities) allowing one entity to exercise control over another entity;
B. or in fact exercises the power of decision ("dependence in fact"), which is presumed;
1. An entity holds a sufficient percentage of the voting rights to exercise effective control in the other entity;
2. The two entities have a common director or the directors of the two entities are linked by a community of interest;
3. The two entities shall be bound, in their contractual, commercial or financial relations, by conditions which differ from those which would be agreed between independent entities and which lead to one of these entities being placed under the economic dependence of the other;
4. Both entities shall be placed under the control of the same third party under the conditions set out above in point 1 above.
Transactions between Related Parties are subject to enhanced deductibility conditions.
