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Merger tax directive

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  • The Cross-border Merger Directive of 26 October 2005 sets forth rules to permit and facilitate the merger of limited liability compan-ies situated in different Member States of the European Union and the European Economic Area.

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  • In 2004 the first legal entity applicable in all EU member states, the so-called European Company or Societas Europaea (SE), was introduced in order to strengthen the competi- tiveness of European companies and improve the functioning of the internal market. In or- der for the SE to be an alternative to existing legal forms, the establishment as well as the transfer of seat should not result in tax consequences.

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