Brussels, 12 February 2008
László Kovács, Commissioner responsible for Taxation and Customs, said: "I am very happy that the Council has adopted this recast, which is an important simplification of a very complicated piece of Community legislation. The rules have been clarified and given a new structure. At the same time we have ensured that restructuring operations, as well as transfers of companies between Member States, shall not be subject to capital duty."
The recast is part of the Commission's "Better Regulation" exercise. It clarifies and simplifies the Directive in view of the problems that arose from its interpretation. The recast Directive:
The Council Directive recasts Directive 69/335/EEC of 17 July 1969 concerning indirect taxes on the raising of capital. When adopted, the purpose of Directive 69/335 was to harmonise the taxes on the raising of capital, with regard to both their structures and rates, and to prevent Member States from creating or levying other similar taxes.
In 1985 Member States were given the option not to levy a capital duty at all or to charge duty on the transactions falling within the scope of the Directive at a single rate not exceeding 1%.
Since 1985, the trend has been towards an elimination of capital duty in Member States. Today, only 7 (Greece, Spain, Cyprus, Luxembourg, Austria, Poland and Portugal) of the 27 Member States continue to levy this tax.