Driving the Positive Tax Agenda - Rethinking the taxation of European PE/VC funds

Invest Europe released its Forward 2024-2029 report, which focuses on three primary goals: leveraging funding opportunities, enhancing financing for critical infrastructure, and establishing Europe as a global leader.

A significant highlight for tax practitioners is Priority 6, which addresses tax policies crucial for growth and cross-border investments. The report identifies cross-border tax frictions as a major issue and proposes solutions such as changes to the withholding tax system and creating best practices for tax incentives. Notably, it suggests the creation of a standardised EU-pooling vehicle and a treaty-accessible SPV to ease tax-related challenges.

Investing in European PE and VC funds involves navigating diverse tax regimes across countries, each with its complexities. These diverse tax regimes are hard to manage when investing in a diversified portfolio of European PE and VC funds. This article will describe how a standardised EU-pooling vehicle can contribute to overcoming this complexity.

You can download the full article here.

Watch this space for further commentary on driving the positive tax agenda.