Invest Europe

Invest Europe’s Supplementary Comments on the Functioning of ATAD I and ATAD II

Positions & consultation responses

19 Jun 2025

This supplementary document builds on Invest Europe’s September 2024 response to the European Commission’s Call for Evidence on the functioning of the EU’s Anti-Tax Avoidance Directive (ATAD). It provides further technical and practical insights into how divergent national implementation of ATAD I and II—particularly the interest limitation and hybrid mismatch rules—is creating legal uncertainty and unintended tax consequences for private equity and venture capital structures. Invest Europe urges more harmonized, proportionate enforcement to preserve investment flows and support Europe’s innovation-driven economy.