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The Commission welcomed ECOFIN Council adoption of a recast of the capital duty directive concerning indirect taxes on the raising of capital.
The recast clarifies and simplifies the Directive in view of the problems that arose from its interpretation. The recast Directive:
- changes radically the structure of the Directive in order to reflect past amendments, with the ultimate aim of abolishing capital duty but with concessions due to the revenue losses this would imply,
- covers both restructuring operations that involve an increase in capital and restructuring operations that do not. The latter previously fell outside the scope of the Directive,
- gives provisions that apply equally to restructuring operations affected by contributions of assets and by exchange of shares; both types of restructuring operations are henceforth exempt from capital duty,
- ensures that the transfer of a capital company between Member States shall be exempt from capital duty.