Budínská, Sá a; Skálo á, Jana
A icle
Exi axa ion in ela ion o c oss-bo de me ge s
Eu opean Financial and Accoun ing Jou nal
P o ided in Coope a ion wi h:
Facul y o Finance and Accoun ing, P ague Uni e si y o Economics and Business
Sugges ed Ci a ion: Budínská, Sá a; Skálo á, Jana (2024) : Exi axa ion in ela ion o c oss-bo de
me ge s, Eu opean Financial and Accoun ing Jou nal, ISSN 1805-4846, P ague Uni e si y o
Economics and Business, Facul y o Finance and Accoun ing, P ague, Vol. 19, Iss. 1, pp. 39-62,
h ps://doi.o g/10.18267/j.e aj.285
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/315555
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
39
Exi Taxa ion in Rela ion o C oss-Bo de
Me ge s
Sá a Budínská – Jana Skálo á*
Abs ac :
The a icle looks a exi axa ion wi hin he Eu opean Union, including how i a ec s
c oss-bo de me ge s. I s a s wi h an explana ion o he concep o exi ax, ollowed
by an analysis o he cu en legisla ion and an analysis o he case law o he
Eu opean Cou o Jus ice. The a icle p esen s he esul s o he esea ch, he
implemen a ion o exi axes in a pa icula coun y, including how i is calcula ed,
he de e mina ion o he ma ke and ax alue and he ax a e. The second objec i e
is o examine how he ule is applied o c oss-bo de me ge s. The da a was ob ained
h ough a quali a i e da a collec ion me hod in he o m o a ques ionnai e su ey
om Decembe 2023 o Janua y 2024. The Bake Tilly G oup’s ad iso y ne wo k
was selec ed o ob ain high quali y in o ma ion. The ques ionnai e was sen o he
employees o his company a he highes managemen posi ions who a e esponsible
o ax ad iso y. The esul s o he su ey showed ha all coun ies analysed ha e
implemen ed exi ax acco ding o he ules se by he EU and mos ly apply his ax
o c oss-bo de me ge s. Howe e , he applica ion o me ge s is no uni o m and an
assessmen is needed o each case implemen ed as o whe he i will be exemp om
he exi ax.
Keywo ds: ATAD; C oss-Bo de Me ge s; Exi Taxa ion.
JEL classi ica ion: G34; H25; K34.
1 In oduc ion
The exi ax, i.e., he ans e o asse s o egis e ed o ice om one Membe S a e
o ano he EU Membe S a e, was in oduced as a pa o Council Di ec i e (EU)
2016/1164 o 12 July 2016 laying down ules agains ax a oidance p ac ices ha
di ec ly a ec he unc ioning o he in e nal ma ke (Eu opean Commission, 2016);
he so-called An i-Tax A oidance Di ec i e – ATAD. The aim o his Di ec i e was
o ensu e ha axes a e paid whe e p o i s and alue a e gene a ed, he eby ensu ing
g ea e ax ai ness. In p ac ice, he e we e o en ans e s o asse s wi hin one
* Sá a Budínská; TPA Tax s. .o., An ala S aška 2027/79, 140 00 P ague, Czech Republic,
<[email p o ec ed]>.
Jana Skálo á; P ague Uni e si y o Economics and Business, Facul y o Finance and Accoun ing,
Depa men o Financial Accoun ing and Audi ing, Wins on Chu chill Squa e 1938/4, 130 67
P ague, Czech Republic, <[email p o ec ed]>, ORCID iD: 0000-0001-6936-6594.
The a icle is p ocessed as an ou pu o a esea ch p ojec Analysis o he Accoun ing and Tax
Solu ion o C oss-Bo de Me ge s and Con e sions in EU S a es egis e ed by he In e nal G an
Agency o P ague Uni e si y o Economics and Business unde he egis a ion numbe F1/5/2023.
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
40
axable en i y o coun ies wi h lowe le els o axa ion, which ul ima ely led o he
paymen o lowe axes (Kappel, 2023). S a es had un il 31 Decembe 2019 o
implemen exi axa ion in hei na ional ules. Howe e , o some Eu opean
coun ies, his ax was no new, and hey al eady had i included in some o m in
hei na ional ax legisla ion.
The new ax ules may ha e a e y signi ican impac on he business en i onmen
in he coun ies conce ned. Acco ding o some esea che s (e.g., Dai, 2018), i is no
a ional o he ax au ho i y o he s a e o impose exi ax on en ep eneu s. The
aim o ou a icle is o map he en i onmen in EU coun ies ega ding he
implemen a ion o ATAD exi ax ules and hen o ind ou how he a ec ed
coun ies apply hese ules o c oss-bo de me ge s. As shown by esea ch
conduc ed in he pas in some coun ies, he in oduc ion o axa ion on me ge s
signi ican ly a ec s he equency o ansac ions ca ied ou (Ho áko á, 2022).
The aim o ou esea ch is hus o ob ain in o ma ion on exi ax inc eases in
indi idual EU coun ies and based on he da a, o in e he impac on he p ac ical
implemen a ion o c oss-bo de me ge s and o p edic whe he his will educe he
numbe o c oss-bo de me ge s. The a ea o c oss-bo de me ge s has long been
a ocus o esea ch, among he mos ex ensi e being esea ch ca ied ou a
Maas ich Uni e si y, whe e Bie meye and Meye -E dmann (2021) examined he
equency o comple ed ansac ions in each EU coun y be ween yea s 2010–2020.
The in oduc ion o he exi ax is he subjec o a numbe o esea ch s udies, heses
and p ac ically o ien ed p o essional a icles. Gene al impac s on he ee mo emen
o people and capi al a e analysed, e.g., by Dabija (2015) o Zak zewska (2020).
The pe spec i e o Ge man ax law is analysed by Haag and Nie mann (2021),
s a ing ha he Ge man ax en i onmen al eady applies he axa ion o he
e alua ion o asse s in me ge s. In he Czech en i onmen , Bu eš (2019) and
Kappel (2021) a e e y c i ical o he opic.
Mos esea ch analyses he case law o he Eu opean Cou o Jus ice in ela ion o
he EU Di ec i e, e.g., He nández González-Ba eda (2019) concludes ha he d a
Di ec i e is oo na ow. I is he only solu ion ha could be incompa ible wi h EU
law. G ea e lexibili y should be p o ided in e ms o di e en ypes o business.
The es o he a icle is s uc u ed as ollows: Sec ion 2 p o ides an o e iew o he
de elopmen o exi ax in case law and legisla ion a he le el o he EU. Sec ion 3
desc ibes he esea ch ca ied ou by indi idual EU coun ies and i s esul s
conce ning he es ablished ules, ax a es and he impac o ax on c oss-bo de
me ge s. Sec ion 4 summa ises he impo an indings and makes ecommenda ions
o p ac ice based on he indings.
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
41
2 Eu opean Exi Tax Legisla ion
Un il 2016, when he ATAD was adop ed, exi axa ion was no egula ed a EU
le el. Howe e , his ax is no new in he EU. The p inciple o exi axa ion is ha
when a axpaye mo es i s asse s o ax esidence o ano he Membe S a e, he S a e
o o igin will ax he economic alue o any capi al gains made in i s e i o y,
whe he o no hose gains a e ealised. Acco ding o he Eu opean Commission’s
explana o y memo andum (Eu opean Commission, 2006), his ule is in ended o
educe he incen i e o axpaye s o educe hei ax paymen s by shi ing hei ax
esidence o asse s o Membe S a es wi h lowe axa ion (Fig. 1).
Fig. 1 Reloca ion o asse s a e he in oduc ion o he exi ax
Sou ce: Au ho ial compu a ion based on Eu opean Commission (2016).
Who is subjec o exi axa ion? To he income axpaye i he o she is shi ing:
a. asse s om i s head o ice o i s pe manen es ablishmen in ano he Membe
S a es o hi d coun y,
b. asse s om i s pe manen es ablishmen o i s head o ice o o he pe manen
es ablishmen in ano he Membe S a e o hi d coun y,
c. i s ax esidence in ano he Membe S a e o hi d coun y, o
d. he business ca ied on by he pe manen es ablishmen o ano he Membe S a e
o hi d coun y.
The calcula ion o his ax shall be based on he ma ke alue o he asse s
ans e ed less hei alue o ax pu poses. The ma ke alue shall be de e mined
a he ime o depa u e o he asse s on he basis o no mal ma ke condi ions. While
he ma ke alue is de ined in he ATAD as “ he amoun o which an asse can be
The ax au ho i y axes
capi al gains
T ans e o asse
T ans e o esidence
The company based in he
Czech Republic
Cyp us
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
42
exchanged o mu ual obliga ions can be se led be ween willing un ela ed buye s
and selle s in a di ec ansac ion.” (Eu opean Commission, 2016, A icle 5(6)),
he e is no de ini ion o he “ alue o ax pu poses” in he ATAD. I can be assumed
ha Membe S a es should ollow hei own na ional ules in de e mining his ax
alue.
A simila ax could be ound in mos wes e n Membe S a es. Howe e , in he
opinion o he Cou o Jus ice o he Eu opean Union (CJEU), his axa ion was in
ce ain cases con a y o he eedom o es ablishmen a ising om A icle 49 o he
T ea y on he Func ioning o he Eu opean Union (TFEU). As a gene al ule, his
was due o he ac ha he depa ing en i y was disad an aged by he immedia e
axa ion o asse s (p o i s) lea ing he Membe S a e. This disad an age occu ed in
compa ison wi h axpaye s who mo ed only wi hin he e i o y o he Membe
S a e. In he la e case, he axpaye who emained in he Membe S a e conce ned
was axed only a he ime o hei ealisa ion, and no immedia ely upon ans e ,
as was he case wi h en i ies lea ing he Membe S a e. By imposing his exi ax,
indi idual s a es e ec i ely discou aged he ee mo emen o people and capi al
wi hin he EU, which was con a y o he undamen al p inciples o he TFEU.
The Cou o Jus ice o he Eu opean Union i sel has deal wi h se e al cases o
es ic ions on eedom o es ablishmen in he con ex o exi axa ion. The
decisions in Case C-9/02 Las ey ie du Saillan in 2004 (CJEU, 2004) and Case
C-470/04 N in 2006 (CJEU, 2006) ha e had he mos signi ican impac on na ional
exi axa ion ules in EU. Admi edly, hose judgmen s conce ned he axa ion o
na u al pe sons. Howe e , he conclusions also had some impac on company’s
na ional ules on exi axa ion. The judgmen s ha e shown ha he di e ence in
ea men o depa ing esiden s cons i u es an obs acle o ee mo emen . Thus, i
a S a e decides o apply an exi ax ( ans e o asse s o ano he Membe S a e), hen
he en i y mus be allowed o de e ha ax un il he p o i s om he ans e ed
asse s a e ealised, p o ided ha he e a e no es ic i e condi ions a ached o he
de e al o ha ax.
The judgmen in Case C-371/10 Na ional G id Indus o 2011 ( an den B oek, 2011),
he judgmen in Case C-164/12 DMC o 2014 and he judgmen in Ve de LabTec
GmbH & Co. KG s Finanzam Hilden (Case C-657/13) o 21 May 2015 ha e made
a majo con ibu ion o legal en i ies in he a ea o exi axa ion (CJEU, 2011; 2014;
2015). The la e conce ned a Ge man limi ed pa ne ship which had ans e ed
in ellec ual p ope y igh s o i s Du ch pe manen es ablishmen . The ans e ga e
ise o an exi ax in Ge many on un ealised p o i s a ising om ans e ed
in ellec ual p ope y igh s, which mus be paid wi hin en yea s. The Cou o
Jus ice was asked o de e mine whe he he Ge man ax on un ealised p o i s om
he ans e o asse s o a Du ch es ablishmen is compa ible wi h EU ules.
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
43
The Cou o Jus ice ound ha he ules we e pe missible unde EU law. The Cou
eached ha conclusion on he basis ha ules: (i) a e necessa y o p ese e he
alloca ion o powe s o axa ion be ween he Membe S a es conce ned and a e
he e o e objec i ely jus i ied by o e iding easons in he public in e es ; and
(ii) a e p opo iona e, in pa icula , on he basis o he ac ha he ax payable is
payable o e a pe iod o en yea s.
To sum up, acco ding o he judgmen s o he CJEU, Membe S a es ha e an
unques ionable igh o collec exi ax. Ano he g oundb eaking conclusion was he
ac ha he CJEU clea ly de e mined ha he axpaye should ha e he choice
be ween immedia e axa ion and de e al o paymen un il he momen o
ealisa ion. The CJEU no only con i med he igh o Membe S a es o collec he
exi ax a a di e en poin in ime han i s ac ual implemen a ion, bu also app o ed
he possibili y o di iding he paymen o he exi ax in o ins almen s.
In esponse o his case law and he epea ed inconsis ency o na ional ax ules o
indi idual Membe S a es wi h EU ules, subs an ial measu es had o be aken. The
Commission o he Eu opean Communi ies came up wi h he i s ini ia i e in he
a ea o coo dina ion o exi axa ion as ea ly as 2006. Howe e , he EU Council did
no issue he ATAD un il en yea s la e .
Exi axa ion is egula ed by A icle 5 o he ATAD. I seems a i s glance o be
a codi ica ion o he exi axa ion case law de eloped by he CJEU (Pee e s, 2017).
The main eason o he adop ion o he Di ec i e is he shi om he ques ion o
whe he and unde wha condi ions Membe S a es may impose an exi ax on
un ealised capi al gains o he ule ha Membe S a es mus subjec such un ealised
capi al gains o exi axa ion.
An impo an aspec ha needs o be add essed in he con ex o exi axa ion is he
ela ionship o his ax o c oss-bo de me ge s. F om a ax poin o iew, c oss-
bo de me ge s can be di ided in o me ge s wi h he c ea ion o a pe manen
es ablishmen and me ge s in which asse s a e ans e ed o ano he Membe S a e
wi hou he c ea ion o a pe manen es ablishmen .
How o app oach he i s ype o me ge s, i.e., wi h he c ea ion o a pe manen
es ablishmen , is se ou in Eu opean di ec i es. The i s di ec i e on c oss-bo de
me ge s was adop ed in 1990. Speci ically, i was Council Di ec i e 90/434/EC on
he common sys em o axa ion applicable o me ge s, di isions, ans e s o asse s
and exchanges o sha es conce ning companies o di e en Membe S a es. The
Di ec i e has been amended many imes, so Council Di ec i e 2009/133/EC o
19 Oc obe 2009 (Eu opean Commission, 2009) on he common sys em o axa ion
applicable o me ge s, di isions, pa ial di isions, ans e s o asse s and exchanges
o sha es conce ning companies o di e en Membe S a es and o he ans e o
he egis e ed o ice o an SE o SCE be ween Membe S a es (he eina e e e ed
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
44
o as he “Me ge Di ec i e”) was subsequen ly adop ed, which is a codi ied e sion
o he i s men ioned Di ec i e (Skálo á, 2019).
The Me ge Di ec i e ensu es iscal neu ali y in A icle 4(1), acco ding o which
he di e ences be ween he ac ual and ax alue o he ans e ed asse s and
liabili ies should no be axed in me ge s. A condi ion o ax neu ali y is ha he
acqui ing company calcula es he new dep ecia ion, p o i s o losses ela ing o
hose ans e ed asse s and liabili ies in acco dance wi h he ules o which he
company being acqui ed would ha e been subjec in he absence o he me ge .
The Me ge Di ec i e also o e s Membe S a es he possibili y o ax discon inui y.
Tax discon inui y occu s when he acqui ing company can ely on new ax alues
(i.e., e alued alues) o he pu pose o calcula ing new dep ecia ion, p o i s and
losses on ans e ed asse s unde na ional ules. I his happens, he Me ge
Di ec i e allows e alua ion gains o be axed. In essence, Membe S a es hus ha e
he op ion o ha ing a wo-p onged app oach o he issue o e alua ion in me ge s.
The Me ge Di ec i e does no deal wi h he second ype o me ge s, in which
a pe manen es ablishmen is no es ablished in he e i o y o he s a e o he
company being dissol ed. This is a undamen ally di e en si ua ion, which has no
been add essed a EU le el un il ecen ly. The ans e o asse s o ano he Membe
S a e wi hou he asse s and liabili ies o he ans e ing en i y emaining linked o
he pe manen es ablishmen had he e ec o dep i ing he Membe S a e o he
company being dissol ed o he igh o ax capi al gains a ising om hose
ope a ions. In ce ain cases, companies had conside able eedom o ca y ou his
ype o c oss-bo de me ge , which allowed hem o ca y ou hese ope a ions
owa ds lowe - ax ju isdic ions. On he o he hand, many Membe S a es esponded
by in oducing an exi ax o apply hese capi al gains ha had no ye been ealised,
which in u n could ha e had a de e en e ec . A possible solu ion o app oaching
c oss-bo de me ge s in he e en ha he asse s o he company being dissol ed a e
mo ed o he membe s a e o he successo company we e b ough by he ATAD.
3 Resul s and Discussion
The aim o he esea ch is o map he s a e o exi ax implemen a ion in a pa icula
coun y. The second objec i e is o examine how he exi ax ule is applied o c oss-
bo de me ge s.
The da a was ob ained h ough a quali a i e da a collec ion me hod in he o m o
a ques ionnai e su ey o he pe iod Decembe 2023 – Janua y 2024. The
ques ionnai e con ained en ques ions, which a e lis ed in he Appendix A. The i s
ques ion included he coun y o he esponden , ollowed by ou ques ions on exi
ax issues and i e ques ions on he impac o exi ax on c oss-bo de me ge s.
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
45
To ob ain good quali y in o ma ion, he Bake Tilly G oup ad iso y ne wo k was
selec ed, which also includes TPA G oup Czech Republic, whe e he au ho s wo k.
The ques ionnai e was sen o he pa ne s esponsible o ax ad iso y, es uc u ing
o me ge s in he espec i e coun y. The a ge g oup o esponden s was selec ed
om ax p o essionals wo king in he coun y in ques ion in a consul ing i m
in ol ed in he Bake Tilly chain.
While p ocessing o he comple ed ques ionnai es, some answe s we e con i med
and cla i ied by elephone in e iew wi h he ele an p o essional. The esul s o
he su ey show ha all he coun ies analysed ha e implemen ed exi ax acco ding
o he ules se by he EU and mos ly apply he ax o c oss-bo de me ge s.
The esea ch was ca ied ou in 20 coun ies in Wes e n, Cen al and Eas e n
Eu ope. The coun ies co e ed we e Slo akia, Poland, Aus ia, Ge many, I aly,
Spain, Po ugal, G eece, Cyp us, Bulga ia, Romania, Slo enia, C oa ia, Hunga y,
he Ne he lands, Luxembou g, Belgium, F ance, La ia and Es onia. Responses
we e e u ned om 14 coun ies, gi ing a e u n a e o a ound 70%. Da a om
o he coun ies we e no included because he au ho s would ha e had o ob ain
hem om o he sou ces whe e i is no possible o ensu e he quali y o co ec
unde s anding o he ex o he o eign legisla ion. Ob aining da a om o he
coun ies should be he subjec o u he esea ch. The Czech Republic’s
pe spec i e was added by he au ho s. In Fig. 2, which shows he map o he Membe
S a es, he coun ies included in he esea ch a e shown in da k g ey colou .
Fig. 2 Pa icipa ing coun ies in he esea ch
A lis o coun ies
so ed alphabe ically:
1. Belgium
2. Bulga ia
3. C oa ia
4. Czech Republic
5. Es onia
6. Ge many
7. Hunga y
8. I aly
9. La ia
10. Luxembou g
11. Ne he lands
12. Po ugal
13. Romania
14. Slo akia
15. Spain
Sou ce: Au ho ial compu a ion based on he ques ionnai e e u n a e.
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
46
3.1 S a us o he implemen a ion o exi ax and i s a es
Indi idual Membe S a es we e obliged o implemen he ATAD by 31 Decembe
2018, bu in he case o exi axa ion, his obliga ion was pos poned un il he end o
2019. The esea ch showed ha mos o he coun ies implemen ed he
implemen a ion wi h e ec wi hin he se deadline. In he case o Spain, i is epo ed
ha he ansposi ion in o na ional legisla ion was only ca ied ou in 2021, howe e ,
Spanish ax legisla ion al eady included p o isions on ou pu axa ion be o e he
in oduc ion o he ATAD. Wi h e ec om 1 Janua y 2021, only mino changes
ha e been made o he Spanish ax legisla ion o b ing he na ional legisla ion in line
wi h ATAD ules. La ia implemen ed he exi ax oge he wi h he hyb id
misma ch ules in o i s na ional ax legisla ion wi h e ec om 12 Feb ua y 2020,
bu acco ding o he p o isions o he ATAD, hese ules should ha e applied om
1 Janua y 2020. The Ge man na ional implemen a ion p ocess also ook longe han
expec ed. I was only in June 2021 ha he las emaining pa s o he ATAD we e
ansposed in o Ge man ax law, and he new e ised exi ax ules did no come
in o o ce un il 1 Janua y 2022.
Howe e , exi ax is a om being new, as i migh seem a i s glance. P io o he
adop ion o he Di ec i e, mos Membe S a es al eady had some kind o exi ee o
ax in cases whe e asse s and liabili ies we e ans e ed o ano he Membe S a e.
In Fig. 3, which shows he map o he Membe S a es, he coun ies ha al eady had
a ce ain o m o exi axa ion be o e he ATAD a e shown in da k g ey colou .
Fig. 3 Pa icipa ing coun ies ha al eady had an exi ax be o e he ATAD
• Belgium
• Ge many
• I aly
• Luxembou g
• Ne he lands
• Po ugal
• Spain
Sou ce: Au ho ial compu a ion based on he ax ules o he Membe S a es.
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
53
o u u e expenses). The ax alue o ax-dep ecia ed asse s in Bulga ia is hei ax
alue as o he da e o ans e . The ax alue o non-dep ecia ed asse s is hei book
alue a he da e o he ans e , adjus ed o inc eases o dec eases in empo a y ax
di e ences (e.g., om e alua ions) and he e alua ion p o ision ha ela es o
indi idual asse s.
In conclusion, i should be no ed ha he de ini ion o accoun ing, acquisi ion o
ma ke p ices may a y om coun y o coun y, so i is always necessa y o
ho oughly examine he ax ea men o a pa icula s a e be o e any eo ganiza ion
is ca ied ou . The same applies o he de e mina ion o he ma ke alue.
3.3 Exi axa ion and c oss-bo de me ge s
C oss-bo de me ge s wi hou a pe manen es ablishmen
The second objec i e o he esea ch is o map he applica ion o exi ax o c oss-
bo de me ge s.
Fi s , i was e i ied whe he he exi ax is applied o c oss-bo de me ge s in which
a pe manen es ablishmen is no es ablished in he e i o y o he company being
dissol ed. Fo ypes o c oss-bo de me ge s in which he asse s emain linked o a
pe manen es ablishmen in he s a e o he company being dissol ed, he e is
a special Eu opean ax egula ion.
Howe e , cases o c oss-bo de me ge s, whe e he asse s do no emain linked o
a pe manen es ablishmen , do no ha e any special ax egime a he le el o
Eu opean di ec i es. Each s a e has he op ion o se i s own ules o he axa ion o
hese ypes o me ge s, bu he ules mus be in line wi h he eedom o
es ablishmen and mus no disad an age he implemen a ion o hese me ge s
compa ed o domes ic me ge s.
Wi h he possibili y o axing c oss-bo de me ge s wi hou he c ea ion o
a pe manen es ablishmen , he ATAD came up wi h a possible applica ion o exi
ax. Some coun ies had al eady wo ked wi h his ax be o e i s in oduc ion, o
some his ins i u e is new. Simila ly, he implemen a ion o his p o ision o he
Di ec i e could be implemen ed di e en ly by each Membe S a e o di e en
ypes o ansac ions. No all coun ies necessa ily ha e o apply his ax o c oss-
bo de me ge s wi hou he c ea ion o a pe manen es ablishmen . Fig. 6 discusses
whe he he exi ax is applied o his ype o me ge in selec ed coun ies.
Mos o he coun ies su eyed, i.e., 60% o he sample, apply exi ax in some o m
o c oss-bo de me ge s wi hou he c ea ion o a pe manen es ablishmen . The nine
coun ies a e: Belgium, Bulga ia, Ge many, I aly, La ia, Luxembou g, Po ugal,
Romania, and Spain. C oa ia, he Czech Republic, Hunga y, and Slo akia do no
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
54
ha e any exi ax on c oss-bo de me ge s. Two coun ies we e included in he
ca ego y o special ea men s, namely Bulga ia and Es onia.
Fig. 6 Me ge wi hou a pe manen es ablishmen and i s impac on exi ax
Sou ce: Au ho ial compu a ion.
In Es onia, c oss-bo de me ge s wi hou a pe manen es ablishmen a e in p inciple
axed, bu i is no an exi ax. Tax au ho i ies in Es onia e y o en use he p o isions
o he Income Tax Ac o eclassi y ansac ions o ax pu poses i he aim o hese
ansac ions is o ob ain a ax ad an age.
On he o he hand, he Bulga ian exi ax egime s ipula es ha he exi ax may no
apply o all c oss-bo de me ge s in which all asse s a e ans e ed o he successo
company, bu only o hose ha all unde one o he ci cums ances lis ed in a
selec ed p o ision o he Bulga ian Income Tax Ac , as a esul o which Bulga ia
no longe has he igh o ax he ans e ed asse s o ac i i ies.
C oss-bo de me ge s wi h c ea ion o a pe manen es ablishmen
The analysis ca ied ou shows ha he c ea ion o a pe manen es ablishmen has
an impac on whe he exi axa ion will apply in mos o he selec ed coun ies. The
mos common a gumen o his is he ax neu ali y o c oss-bo de me ge s.
Indeed, one o he main condi ions o ax neu ali y o c oss-bo de me ge s unde
he Me ge Di ec i e is p ecisely ha he asse s and liabili ies ans e ed emain
linked o he ac i i ies o he pe manen es ablishmen in he s a e o he
disappea ing company. Thus, he axable en i y essen ially emains ax-p esen in
60%
27%
13%
Applica ion o exi axes o c oss-bo de me ge s wi hou
he c ea ion o a pe manen es ablishmen
Yes
No
Special Rules
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
55
he e i o y o ha S a e and ha S a e does no lose he possibili y o axing capi al
gains on he ans e ed asse s.
Fig. 7 shows ha no in all cases he c ea ion o a pe manen es ablishmen is ela ed
o he applica ion o exi ax. This is he case o Slo akia, which does no apply exi
ax o c oss-bo de me ge s whe e no pe manen es ablishmen is c ea ed. Howe e ,
he c ea ion o a pe manen es ablishmen in a c oss-bo de me ge om Slo akia
has di e en conside a ions (Ho áko á, 2022). Whe he he asse s o he su i ing
company emain unc ionally connec ed o he pe manen es ablishmen in Slo akia
is one o he ac o s ha de e mines whe he a c oss-bo de me ge can be ca ied
ou a his o ical o ai alues o ax pu poses. In addi ion, exi axa ion applies only
i he pe manen es ablishmen emains in he s a e o he dissol ing company, bu
only in he e en o a u u e ans e o hose asse s o business ac i i ies om he
pe manen es ablishmen ab oad.
Fig. 7 E ec o pe manen es ablishmen on exi ax
Sou ce: Au ho ial compu a ion.
P ocedu e o de e mining exi axes in a c oss-bo de me ge
The ac whe he he selec ed coun ies apply he exi ax o c oss-bo de me ge s
wi hou he es ablishmen o a pe manen es ablishmen has al eady been e i ied
abo e. The esea ch showed a o al o nine coun ies ha con i med his ac .
Ano he a ea o be e i ied was he p ocedu e o de e mining his ax. Tab. 3
p o ides an o e iew o he p ocedu e o de e mining exi o c oss-bo de me ge s
in each coun y.
67%
33%
Is i decisi e o he applica ion o exi ax whe he a
pe manen es ablishmen is c ea ed in a c oss-bo de
me ge ?
Yes
No
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
56
Tab. 3 P ocedu e o de e mining exi ax in a c oss-bo de me ge
Coun y
P ocedu e o de e mining exi ax in a c oss-bo de me ge wi hou
a pe manen es ablishmen
Belgium
Fi s i is necessa y o analyse whe he a c oss-bo de eo ganiza ion can be
exemp om Belgian CIT. In he case o an exemp eo ganiza ion Belgian
exi ax is due on all asse s (and exemp ese es) ha do no emain in he
Belgian pe manen es ablishmen a e he c oss-bo de eo ganiza ion. In
he case o a axable eo ganiza ion he Belgian company is deemed be
discon inued o Belgian ax pu poses and Belgian liquida ion ax would be
due.
Bulga ia
The exi ax in Bulga ia ep esen s po en ial addi ional axa ion o igina ing
om he adjus men o he ax base and esul ing om he applica ion o
ma ke alues on he w i e-o o he ans e ed asse s. The ax adjus men s
a e applied in he las ax e u n i a company o pe manen es ablishmen is
being dissol ed o in he cu en yea ly ax e u n in case a pe manen
es ablishmen in he coun y emains.
Czech Republic
Taxa ion on he ans e o asse s wi hou a change o owne ship (exi ax)
does no apply o c oss-bo de me ge s wi hou he c ea ion o a pe manen
es ablishmen as he me ge in ol es a change o owne ship.
Hunga y
C oss-bo de me ge s a e no lis ed in he exi ax sec ion o he Hunga ian
Income Tax Ac . Unde Hunga ian legisla ion exi ax does no apply o
capi al wi hd awals unde company law.
I aly
The exi ax egime applies in e alia whe e a esiden company ans e s i s
ax esidence o asse s om I aly as a esul o c oss-bo de me ge s,
deme ge s and o he co po a e eo ganiza ions and no pe manen
es ablishmen emains in I aly. Capi al gains a ising om he ans e o he
esidence should be de e mined join ly by compa ing he o al ai ma ke
alue o he “going conce n” and i s ax base.
La ia
The axpaye mus inc ease he CIT base by he ma ke alue o he expo ed
asse s.
Luxembou g
This is a deemed disposal wi h axa ion o hidden capi al gains on asse s
measu ed a ai ma ke alue.
Po ugal
The me ge (dissolu ion and liquida ion o a Po uguese company) is subjec
o axa ion as i a sale o he asse s occu ed a ma ke alue. In gene al
e ms all asse s and liabili ies a e conside ed ans e ed by he Po uguese
company a ma ke alue – simila wi h he exi ax.
Romania
The egis a ion o a pe manen es ablishmen in Romania ollowing a c oss-
bo de me ge ep esen s a condi ion o ax neu ali y om a co po a e ax
pe spec i e. I no pe manen es ablishmen is egis e ed in Romania as he
s a e o he dissol ing company he exi ax applies o he ans e o asse s.
Slo akia
Exi ax e ec i ely does no apply in his scena io because c oss-bo de
me ge s a e ca ied ou a ai alues o ax pu poses.
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
57
Coun y
P ocedu e o de e mining exi ax in a c oss-bo de me ge wi hou
a pe manen es ablishmen
Spain
The exi ax applies o he di e ence be ween he ma ke alue and he
acquisi ion alue o he ans e ed asse s. Howe e , he Spanish CIT Ac
con ains a special ax sys em applicable o es uc u ing ansac ions which
is based on he ax neu ali y o di ec capi al gains axa ion.
Sou ce: Au ho ial compu a ion.
No e: C oa ia, Es onia, Ge many and he Ne he lands a e omi ed as hey ha e no
answe ed he ques ion.
The applica ion o exi ax o c oss-bo de me ge s a ies om coun y o coun y.
Some coun ies do no apply i o c oss-bo de me ge s, while o he s do, and o he s
ha e special ules ha need o be examined in mo e de ail o de e mine whe he he
ax will be applied o a gi en me ge . In all cases, howe e , i is necessa y o
ho oughly examine whe he i will be a so-called exemp (no subjec o exi ax)
c oss-bo de me ge o a me ge ha mee s he c i e ia o he egula ion o he
applica ion o he exi ax. In each coun y, he es ic ions on he applica ion o exi
ax a e se di e en ly and, in some cases, no “exemp ion” can be applied. Thus, each
c oss-bo de me ge mus be examined on a case-by-case basis and he ele an ax
egime in he coun y o he company being dissol ed mus be ho oughly analysed.
4 Conclusion
The analysis shows ha he impac o he exi ax on c oss-bo de me ge s is
conside able, especially i he ocus is pu on c oss-bo de me ge s wi hou he
es ablishmen o a pe manen es ablishmen . Un il ecen ly, hese c oss-bo de
me ge s we e no subjec o any ax ea men a he Eu opean le el. Indi idual
Membe S a es hus had a ee hand in he ax ea men o me ge s which did no
en ail he c ea ion o a pe manen es ablishmen . The inconsis ency o axa ion and
he i ually non-exis en ax ea men o hese me ge s a EU le el ha e c ea ed
he possibili y o agg essi e ax planning. Thus, he me ging companies could easily
a oid axa ion on he un ealised p o i s on he ans e ed asse s by ca ying ou
a c oss-bo de me ge wi hou c ea ing a pe manen es ablishmen in he S a e o
he company being dissol ed. Howe e , his was no he case o all EU coun ies.
Some s a es ha e ea ed hese si ua ions in hei ax egula ions wi h he equi alen
o he now exis ing exi ax. The p oblem wi h hese ax adjus men s, howe e , was
ha hey mos ly wen beyond wha was necessa y. A e y common p oblem wi h
hese egula ions was hei inconsis ency wi h Eu opean law on he ee mo emen
o pe sons and eedom o es ablishmen . These ypes o me ge s we e
disad an aged compa ed o adi ional domes ic me ge s o ax-neu al me ge s
unde he Me ge Di ec i e due o hei immedia e exi axa ion.
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
58
The in oduc ion o a single exi ax ule has hus le elled he playing ield in all
Membe S a es in exi axa ion and in oduced uni o m ules o he collec ion and
de e al o his ax. I should be no ed ha he ansposi ion o his p o ision was
ca ied ou di e en ly by each s a e, which may ha e led o de ia ions in indi idual
legal egula ions. The e o e, i canno be 100% a ibu ed ha he exi ax is always
applied o e e y c oss-bo de me ge wi hou he c ea ion o a pe manen
es ablishmen . Al hough he exi ax has been ansposed by all he coun ies
su eyed, each applies i o di e en ansac ions. The e o e, e en his uni o m
egula ion will no always esul in he axa ion o ans e ed asse s in he e en o
a c oss-bo de me ge , i he selec ed EU coun y does no include his ansac ion
in i s na ional exi ax legisla ion. F om he esea ch ca ied ou , i can be concluded
ha , wi h a ew excep ions, mos o he coun ies su eyed apply his ax o c oss-
bo de me ge s. This inding can be conside ed e y bene icial and is likely o ha e
a signi ican impac on he numbe o implemen a ions o hese ypes o me ge s,
especially in hose coun ies ha did no ha e a simila ax be o e i s in oduc ion.
An impo an ou come o he analysis is also he p ocedu e by which he ax is
assessed, including he de e mina ion o ma ke and ax alues o i s calcula ion.
Al hough he exi ax was o iginally pe cei ed as an obs acle, he cu en s a e o
he Eu opean legisla ion says he opposi e and se s he basic ules and obliga ion o
implemen i . In conclusion, i should be no ed ha in he case o any c oss-bo de
ansac ion, i is always necessa y o ho oughly s udy he ax ea men o exi
axa ion in he selec ed coun y. I is impo an no o ely on he ac ha he
implemen a ion ook place a he le el o all Eu opean coun ies in he same way.
This is because each coun y may apply his ax o di e en ansac ions, which may
also esul in a ia ions in i s applica ion o c oss-bo de me ge s. This esea ch
compa es selec ed Eu opean coun ies in wo a eas. The i s p esen s he ules o
ax collec ion on exi , which can be used as a s a ing poin o u he esea ch. The
sec ion on he impac o exi axes on c oss-bo de me ge s can hen be used as
a possible jus i ica ion o educing o inc easing he numbe o c oss-bo de
me ge s in each coun y. Ba ie s o ha moniza ion o c oss-bo de me ge s we e
add essed by Žá o á and Skálo á (2010), Bie meye (2013), and Bie meye and
Meye -E dmann (2021). The esea ch builds on p e iously published wo k bu
b ings a new pe spec i e ha has been gained by engaging ax p o essionals om
se e al coun ies. The published summa ies a e hus uly eliable and ha e been
ob ained om quali ied expe s. Howe e , he in ol emen o quali ied
p o essionals has also b ough pi alls as i has no been possible o ob ain good
quali y esponses om all EU coun ies, so he esea ch is limi ed o 15 coun ies
ou o he 27. We expec o expand he sample o coun ies in u u e esea ch o
p o ide a comp ehensi e iew.
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
59
Re e ences
Bie meye , T., 2013. S udy on he applica ion o he C oss-Bo de Me ge s
Di ec i e. Eu opean Commission. DOI: 10.2780/96404.
Bie meye , T., Meye -E dmann, M., 2021. C oss-Bo de Co po a e Mobili y in he
EU: Empi ical Findings 2021. SSRN Elec onic Jou nal.
DOI: 10.2139/ss n.3960618.
Bu eš, M., 2019. Zdanění při odchodu („exi ax") aneb Jak o může dopadnou ,
když E opská unie poslouchá F ancii. DAUČ. Daně a p á o p axi. A ailable
om: <h p://www.dauc.cz/dokumen /?modul=li&cislo=262041>. [17 July 2023].
Cou o Jus ice o he Eu opean Union (CJEU), 2004. Judgmen o 11 Ma ch 2004,
Hughes de Las ey ie du Saillan , C-9/02, EU:C:2004:138. A ailable om:
<h ps://cu ia.eu opa.eu/ju is/showPd .js ? ex =&docid=48987&pageIndex=0&do
clang=en&mode=ls &di =&occ= i s &pa =1&cid=6129420>. [11 Ma ch 2024].
Cou o Jus ice o he Eu opean Union (CJEU), 2006. Judgmen o 7 Sep embe
2006, N, C-470/04, EU:C:2006:525. A ailable om: <h ps://eu -
lex.eu opa.eu/legal-con en /CS/TXT/PDF/?u i=CELEX:62004CJ0470>.
[12 Ma ch 2024].
Cou o Jus ice o he Eu opean Union (CJEU), 2011. Judgmen o 29 No embe
2011, Na ional G id Indus BV, C-371/10, EU:C:2011:785.
A ailable om: <h ps://eu -lex.eu opa.eu/legal-
con en /CS/TXT/PDF/?u i=CELEX:62010CJ0371>. [15 Ma ch 2024].
Cou o Jus ice o he Eu opean Union (CJEU), 2014. Judgmen o 23 Janua y
2014, DMC, C-164/12, EU:C:2014:20. A ailable om:
<h ps://cu ia.eu opa.eu/ju is/documen /documen .js ? ex =&docid=146689&page
Index=0&doclang=EN&mode=ls &di =&occ= i s &pa =1&cid=22084892>.
[19 Ma ch 2024].
Cou o Jus ice o he Eu opean Union (CJEU), 2015. Judgmen o 21 May 2015,
Ve de LabTec GmbH & Co. KG, C-657/13, EU:C:2015:331. A ailable om:
<h ps://cu ia.eu opa.eu/ju is/documen /documen .js ? ex =&docid=164355&page
Index=0&doclang=EN&mode=ls &di =&occ= i s &pa =1&cid=22085890>.
[15 Ma ch 2024].
Dabija, V., 2015. Exi Taxa ion in he Eu opean Union. Is he e eally a p oblem?
Mas e ’s hesis, Lund Uni e si y. A ailable om:
<h ps://www.lunduni e si y.lu.se/lup/publica ion/5436075>. [17 July 2023].
Dai, D., 2018. Is exi ax a good idea o he axman? Jou nal o Economic S udies,
45(4), 810–828. DOI: 10.1108/jes-04-2017-0094.
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
60
Eu opean Commission, 2006. Explana o y Memo andum o COM(2006)825 - Exi
axa ion and he need o co-o dina ion o Membe S a es’ ax policies.
Documen 52006DC0825. A ailable om: <h ps://eu -
lex.eu opa.eu/LexU iSe /LexU iSe .do?u i=CELEX:52006DC0825:CS:h ml>.
[15 July 2023].
Eu opean Commission, 2009. Council Di ec i e 2009/133/EC o 19 Oc obe 2009
on he common sys em o axa ion applicable o me ge s, di isions, pa ial
di isions, ans e s o asse s and exchanges o sha es conce ning companies o
di e en Membe S a es and o he ans e o he egis e ed o ice o an SE o SCE
be ween Membe S a es (Codi ied e sion). A ailable om: <h ps://eu -
lex.eu opa.eu/eli/di /2009/133/oj>. [30 Ma ch 2024].
Eu opean Commission, 2016. Council Di ec i e (EU) 2016/1164 o 12 July 2016
laying down ules agains ax a oidance p ac ices ha di ec ly a ec he unc ioning
o he in e nal ma ke . A ailable om: <h ps://eu -lex.eu opa.eu/legal-
con en /EN/TXT/?u i=CELEX%3A02016L1164-20220101>. [19 July 2023].
Haag, M., Nie mann, M., 2021. D as ic Tigh ening O Exi Tax As O 1 Janua y
2022. Mondaq. A ailable om: <h ps://www.mondaq.com/ge many/ ax-
au ho i ies/1075286/d as ic- igh ening-o -exi - ax-as-o -1-janua y-2022>.
[10 Feb ua y 2024].
He nández González-Ba eda, P. A., 2019. Exi Taxes: One Size Should No Fi All.
In: Almudí Cid, J. M., Fe e as Gu ié ez, J. A., He nández González-Ba eda,
P. A., (Eds). Comba ing Tax A oidance in he EU: Ha moniza ion and Coope a ion
in Di ec Taxa ion, 191–226. Alphen aan den Rijn: Kluwe Law In e na ional.
ISBN: 978-94-035-0154-3.
Ho áko á, G., 2022. Accoun ing and axa ion o me ge s in Slo akia. Mas e ’s
hesis, P ague Uni e si y o Economics and Business. A ailable om:
<h ps:// skp. se.cz/english/87830>. [4 Ap il 2024].
Kappel, J., 2021. Implemen a ion o Exi Taxa ion in he Czech Republic. Analysis
and S udies CASP, 12(2), 45–50. DOI: 10.33119/ascasp.2021.2.5.
Kappel, J., 2023. Opa ření p o i yhýbání se daňo ým po innos em [An i-Tax
A oidance Measu es]. P aha: C. H. Beck. ISBN: 978-80-7400-912-9.
OECD, 2017a. OECD T ans e P icing Guidelines o Mul ina ional En e p ises and
Tax Adminis a ions 2017. Pa is: OECD Publishing. DOI: 10.1787/ pg-2017-en.
OECD, 2017b. Model Tax Con en ion on Income and on Capi al: Condensed
Ve sion 2017. Pa is: OECD Publishing. DOI: 10.1787/m c_cond-2017-en.
Eu opean Financial and Accoun ing Jou nal, 2024, ol. 19, no. 1, pp. 39–62.
61
Pee e s, S., 2017. Exi Taxa ion: F om an In e nal Ma ke Ba ie o a Tax
A oidance P e en ion Tool. EC Tax Re iew, 26(3), 122–132.
DOI: 10.54648/ec a2017014.
Skálo á, J., 2019. Úče ní a daňo é sou islos i přeměn obchodních společnos í
[Accoun ing and Tax Aspec s o Legal Fo m T ans o ma ion]. 3 d edi ion. P ague:
Wol e s Kluwe . ISBN 978-80-7598-570-5.
an den B oek, H., 2011. Exi Taxa ion o C oss-Bo de Me ge s a e Na ional G id
Indus. S udi T ibu a i Eu opei, 3(1). DOI: 10.6092/issn.2036-3583/4819.
Zak zewska, P., 2020. A legal s udy in o he EU’s app oach owa ds exi axa ion.
Mas e ’s hesis, Lund Uni e si y. A ailable om:
<h ps://www.lunduni e si y.lu.se/lup/publica ion/9018330>. [10 Augus 2023].
Žá o á, M., Skálo á, J., 2010. Accoun ing Regula ion o C oss Bo de Me ge s in
Eu ope and Obs acles om he Implemen a ion o he 10 h EC Di ec i e.
In: 5 h In e na ional Wo kshop on Accoun ing & Regula ion, 23–25 Sep embe
2010, Siena, I aly.
Budínská, S., Skálo á, J.: Exi Taxa ion in Rela ion o C oss-Bo de Me ge s.
62
Appendix A: Su ey Ques ions
1. Please w i e he name o he coun y.
2. Has he exi ax been implemen ed in you coun y’s ax sys em?
3. How is he ma ke alue o ans e ed asse s de e mined o exi ax pu poses?
4. How is he ax alue o ans e ed asse s de e mined o exi ax pu poses?
5. Do you apply he exi ax o c oss-bo de me ge s in which all asse s a e ans e ed o
a successo company in ano he EU Membe S a e wi hou es ablishing a pe manen
es ablishmen in you s a e as he s a e o he company being dissol ed? I so, wha is
he p ocedu e o de e mining i ?
6. When applying he exi ax o c oss-bo de me ge s, is i decisi e whe he a pe manen
es ablishmen emains in he s a e o he company being dissol ed?
7. I a c oss-bo de me ge om you coun y o he Czech Republic we e o ake place,
when and unde wha ci cums ances would he exi ax be applied?
8. Wha is he alua ion p ocedu e o asse s in c oss-bo de me ge s?
9. Do you use his alua ion p ocedu e o he c oss-bo de me ge s e e ed o in
ques ion 7 also as a s a ing poin o exi axa ion?
10. Wha is he exi ax a e?
