L 161/110
EN
Official Journal of the European Union
16.6.2022
3.2.3.3.
C o n d i ti on s for d et e rm i n i n g the app ropr i atene ss of f i sc al i nc en ti ve s 122.
As pointed out in Section 3.2.2.2, point (d), Section 3 of the General Block Exemption Regulation is limited to fiscal incentives targeted at investors who are natural persons.
Therefore, measures using fiscal incentives to encourage corporate investors to provide finance to eligible undertakings, either directly or indirectly through the acquisition of shares in a dedicated fund or other types of investment vehicles that invest into such undertakings, are subject to notification to the Commission.
123.
As a general rule, Member States have to base their fiscal aid measures on the findings of a market failure or other relevant obstacle in the ex ante assessment, and therefore target their instrument towards a well-defined category of eligible undertakings.
124.
Fiscal incentives to corporate investors may take the form of income tax reliefs and/or tax reliefs on capital gains and dividends, including tax credits and deferrals.
In its case practice, the Commission has generally considered as appropriate income tax reliefs that contain specific limits on the percentage of the invested amount that the investor can claim for the purposes of the tax relief, as well as on the tax break amount which can be deducted from the investor’s tax liabilities.
Moreover, capital gains tax liability on disposal of shares can be deferred if reinvested in eligible investments within a certain period, while losses arising upon disposal of such shares may be deducted from profits accruing from other shares subject to the same tax.
125.
In general, the Commission considers that fiscal incentives to corporate investors appropriate if the Member State can produce evidence demonstrating that the selection of the eligible undertakings is based on a well-structured set of investment requirements, made public through appropriate publicity, and setting out the characteristics of the eligible undertakings which are subject to a market failure or other relevant obstacle.
126.
Without prejudice to the possibility of prolonging a measure, fiscal schemes must have a maximum duration of ten years.
If the Member State proposes to extend a measure to a total duration of more than ten years (including predecessor schemes, if any), it must carry out a new ex ante assessment, together with an evaluation of the effectiveness of the scheme during the entire period of its implementation.
127.
In its analysis, the Commission will take into account the specific characteristics of the relevant national fiscal system and the fiscal incentives that already exist in the Member State, as well as the interplay between those incentives.
128.
The fiscal advantage must be open to all investors fulfilling the applicable criteria, without discrimination as to their place of establishment.
Member States should therefore ensure adequate publicity regarding the scope and the technical parameters of the measure.
They should include the relevant ceilings and caps determining the maximum advantage that each individual investor may draw from the measure, as well as the amount of the maximum investment which can be made in individual eligible undertakings.
3.2.3.4.
C o n d i ti on s for m ea su re s s u ppor ti n g a lter n a tive tr ad i ng pl atfo r m s
129.
As regards aid measures supporting alternative trading platforms beyond the limits set out in the General Block Exemption Regulation, the operator of the platform must provide a business plan demonstrating that the aided platform can become self-sustainable in less than ten years.
Moreover, plausible counterfactual scenarios must be provided in the notification, comparing the situations with which the tradable undertakings would be confronted if the platform did not exist, in terms of access to the necessary finance.
130.
The Commission will look favourably at alternative trading platforms set up by and operating across several Member States, because they may be particularly efficient and attractive to private investors, in particular to institutional investors.
131.
For existing platforms, the proposed business strategy of the platform must show that, due to a persistent shortage of listings, and therefore a shortage of liquidity, the platform concerned needs to be supported in the short-term, despite its long-term viability.
The Commission will consider positively aid for the setting up of an alternative trading platform in Member States where no such platform exists.
Where the alternative trading platform to be supported is a sub-platform or subsidiary of an existing stock exchange, the Commission will pay particular attention to the assessment regarding the lack of finance that such a sub-platform would face.