Commission Proposes Tax Incentive for Equity
Published 4 July 2022
Category: Taxation / VAT
On 11 May 2022, the European Commission has presented a proposal for a directive providing for a debt-equity bias reduction allowance, or DEBRA, to help businesses access the financing they need and to become more resilient. The measure will support businesses by introducing an allowance that will grant to equity the same tax treatment as debt.
The proposal stipulates that increases in a taxpayer’s equity from one tax year to the next will be deductible from its taxable base, similarly to what happens to debt.
The proposal includes certain anti-tax avoidance rules to ensure tax fairness.
Next steps: The proposal is open for feedback until 29 July 2022.
The proposal is available here.
Other updates
EU Commission presents proposal for EU Inc. (28th regime)
The initiative aims to address long-standing fragmentation across the EU’s 27 national company law systems by introducing a single, harmonised legal structure designed primarily for innovative companies and startups.
Venture CapitalPublication of Omnibus l
The Omnibus I Directive (Directive 2026/470) was published in the Official Journal of the European Union on 26 February 2026.
CSDDDCSRDSustainabilityEU Inc.
At the World Economic Forum in Davos, European Commission President Ursula von der Leyen officially placed the long-debated EU Inc. concept at the center of the EU’s strategic narrative.
Venture CapitalEuropean Parliament approves provisional agreement on the Omnibus package
The Omnibus I simplification package introduces amendments to the Corporate Sustainability Due Diligence Directive (“CSDDD”) and the Corporate Sustainability Reporting Directive (“CSRD”).
CSDDDCSRDSustainabilityThe Danish FSA publishes observations on sustainability reports
The Danish Financial Supervisory Authority (the “Danish FSA”) published a report evaluating the sustainability reports of 21 financial companies in connection with their annual reports for 2024.
CSRDSustainabilityThe Danish FSAEU political agreement on strengthened FDI screening framework
The initiative forms part of the EU’s wider economic security agenda and seeks to reduce fragmentation between national screening regimes while strengthening the protection of security and public order.
Cross-BorderDanish Regulation