The report of the Venture Capital Tax Expert Group on Removing Tax Obstacles to Cross-Border Venture Capital Investments (VC Tax Expert Group) was published on 30 April 2010. Venture capital is a vital source of growth for small and medium enterprises (SMEs). Therefore, facilitating venture capital investment within the EU is crucial for good economic growth. The report identifies the main tax barriers to cross-border investments of Venture Capital in the EU and recommends how to overcome these barriers.
The report contains two main recommendations for action:
The report also contains recommendations such as that VC funds should be allowed to claim withholding tax relief entitlements on behalf of their investors.
The Commission in its new economic strategy Europe 2020 says it will propose actions to develop innovative financing solutions, including making an efficient European venture capital market a reality.