Press Release: Taxation: Commission consults on tax obstacles to cross-border venture capital investment

The European Commission has launched a public consultation to collect factual examples of direct tax problems that arise when venture capital is invested across borders. Due to mismatches between the tax systems of the EU's 27 Member States, venture capital funds can face problems of double taxation as well as legal and administrative uncertainty when they invest across borders.

These problems could hinder the full development of the venture capital market in Europe and therefore compromise the provision of financing to the EU's most innovative small and medium-sized enterprises (SMEs).