Increasing Substance Requirements in the European Union in 2023

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In December 2021, the European Commission published the text of a draft Directive establishing rules to prevent the misuse of shell companies for tax purposes, as well as amending Directive 2011/16/EU on administrative cooperation (DAC).
The draft Directive provides for minimum presence indicators for business entities in the EU Member States, as well as rules regarding the tax regime for entities that do not meet these indicators. That is, it applies to all European companies.
What does this mean for the owners of Ukrainian companies, or Ukrainian entrepreneurs who have their own business in Europe?

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Team of "Pravova dopomoga" law firm
Publication date: 30/08/2022

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