As a legal entity, an EEIG (European Economic Interest Grouping) is able to pay taxes independently. However, there are some tax circumstances that should be taken into account when using an EEIG:
Taxation at member level: The EEIG itself is not taxable, but the EEIG's members may have to pay taxes on their share of the EEIG's income.
Avoid multiple taxation: The income of an EEIG can be taxed in different countries because it usually comes from income from different countries. In order to avoid double taxation, the member states have concluded bilateral agreements that regulate the allocation of taxation rights and the avoidance of double taxation.
Tax optimization: EWIV members can use tax optimization solutions to minimize their tax burden. An experienced tax advisor can help find the best solution.
Tax advantages through cross-border cooperation: Cooperation in an EEIG can lead to members benefiting from tax advantages. For example, synergy effects can be achieved through collaboration and pooling of resources, which can have a positive impact on the tax burden.
Applicable tax rules: EEIG members should be aware that tax rules and regulations may vary from country to country. It is therefore important that you seek advice from experienced professionals to ensure that the EEIG complies with tax regulations in each country in which it operates.
Overall, there are tax circumstances that should be taken into account when setting up and managing an EEIG. It is important that EEIG members seek advice from experienced professionals to ensure they comply with all tax regulations and minimize tax burden.
Comments