Briefing
Tax and the EU Foreign Subsidies Regulation
The EU Foreign Subsidies Regulation, as supplemented by the detailed guidance in the Foreign Subsidies Implementing Regulation, is intended to fill a gap perceived by the EU Commission in the regulatory framework that protects the single market from distortive state intervention – at heart, it is a tool to give the EU Commission the ability to be informed about, assess and (potentially) sanction foreign subsidies granted outside the EU to undertakings that either enter procurement processes or undertake M&A activity within the EU. Among other things, it imposes a mandatory notification obligation for proposed M&A and joint venture transactions involving EU entities if certain thresholds are met.
In the article available at the link below, Jill Gatehouse and Rob Jones from our London Tax team discuss what the EU Foreign Subsidies Regulation is and why and how it matters to tax.
This article was originally published in British Tax Review on 18 July 2024.
