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European Commission Finds Luxembourg Did Not Grant Illegal State Aid to McDonald's

20 September 2018

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European Union-Luxembourg-United States

On 19 September 2018, the European Commission issued a statement announcing its findings that tax rulings granted by Luxembourg to McDonald's in 2009 did not constitute illegal State aid. --- The Commission has today decided that the non-taxation of certain McDonald's profits in Luxembourg is not illegal State aid. Our case concerned two tax rulings granted by Luxembourg to McDonald's in 2009. These exempt from taxation in Luxembourg all franchise profits that McDonald's receives from third parties operating McDonald's outlets in Europe, the Ukraine and Russia. In the first ruling, Luxembourg falsely assumed that these profits were taxable in the...