|-||the first company directly holds a participation equal to at least 25% of the voting rights in the second company; or|
the second company directly holds a participation equal to at least 25% of the voting rights in the first company; or
|-||a third company, fulfilling the requirements under Annexes A and B of the Decree, directly holds a participation equal to at least 25% of the voting rights in both the first and the second companies.|
The afore-mentioned participations must be held for an uninterrupted period of at least 1 year.
The request for the application of the exemption regime shall be substantiated by an attestation of the beneficial owner's residence issued by the tax authorities of the relevant Member State, and by a declaration of the beneficial owner regarding the fulfilment of the requirements laid down in Annexes A and B of the Decree.
As regards the definition of "interest" and "royalties", the Decree follows the Directive.
The term "interest" includes income from debt claims of every kind, whether or not secured by mortgage, and in particular, income from securities and income from bonds or debentures, including premiums and prizes attached to such securities, bonds or debentures.
The term "royalties" includes:
|-||payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films and software, any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience; and|
payments for the use of, or the right to use, industrial, commercial or scientific equipment
|-||where the amount of the interest or royalties exceeds the amount that would have been agreed by the payer and the beneficial owner in the absence of a special relationship between the two parties. Such a special relationship exists when one party directly or indirectly controls the other, or when both parties are directly or indirectly controlled by the same third party;|
where "thin capitalization" rules apply; and
|-||where interest and royalty are paid to persons within the European Union that are directly or indirectly controlled by one or more persons that are not resident of an EU Member State.|