Additional incentives for M&As
The National Economy and Finance Ministry and market representatives are examining how to strengthen existing incentives and cover possible gaps in order to encourage further the mergers and acquisitions in the economy.
According to information from ministry sources, plans include the adoption in the coming months of legislation that will incorporate an EU directive on the common tax regime applicable to mergers, divisions, partial divisions, asset contributions and share exchanges involving companies from different member states. Also, the regulation will update and unify the tax treatment of company transformations.
Plans further include the extension of the favorable framework of last year’s law for the promotion of mergers, so that it also covers the absorption of small by larger companies, as currently this is focused only on small and medium-sized companies. It is noted that Law 4935/22 provides for a 30-50% tax reduction in the new company that will be created from the merger for nine years.
The ministry is also considering incentives for the financing of businesses that are in the development stage, having overcome the first stage of their creation.
