The Foreign Subsidies Regulation: The Extraterritorial Tax Dimension

In the fourth post in the Renforce Blog Series on the Foreign Subsidies Regulation, Dionysios Pelekis looks at the notion of a “subsidy” in relation to the notion of State aid, and discusses the extraterritorial fiscal implications of the Regulation. Taxation, and the ability to carry out economic, social, and industrial policy via the tax system, is a central aspect of sovereignty. However, due to the width of the notion of a subsidy, and to the scope of the Regulation, this new instrument seems capable of affecting the tax affairs of third countries.