Press Release: Direct Taxation: The European Commission proposes an EU co-ordinated approach on relief for losses incurred in other Member States (cross-border loss relief)

In the framework of an EU-coordinated approach in direct taxation (IP/06/1827), the European Commission invites Member States to explore ways of allowing companies to set off losses incurred in other Member States. In most Member States, domestic losses may be set-off against other profits in the same Member State. However, there is only limited availability for such relief for losses incurred in other Member States. The lack of cross-border relief for losses in the Member States' legislations creates a barrier to entering other markets and therefore undermines the international competitiveness of European companies. The Communication examines several solutions aiming at removing these obstacles.

European Commission: DG Communication: MEMO/06/499 http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/06/499&format=HTML&aged=0&language=EN&guiLanguage=fr

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