CFE Tax Advisers Europe has submitted an Opinion Statement in response to the European Commission’s consultation on the creation of a “28th Regime” – a simplified EU legal form intended to facilitate cross-border growth for start-ups and scale-ups.
CFE strongly supports the objective of creating a streamlined EU-wide corporate structure, but stresses that meaningful tax simplification must form a core part of the initiative if it is to succeed. Drawing lessons from the limited uptake of the Societas Europaea, the submission highlights that without harmonised tax rules and coordinated compliance measures, a new entity form will not deliver sufficient value to smaller businesses.
Key Recommendations
CFE identifies key tax-related barriers to cross-border scaling, including inconsistent access to tax incentives, divergent transfer pricing rules, and duplicative reporting obligations. The Opinion further urges the Commission to integrate tax and corporate law reforms in parallel, ensuring the new regime provides a genuinely practical, low-burden route.
CFE proposes targeted simplification measures, such as:
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A single EU tax filing interface
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Harmonised documentation standards
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Safe harbours for transfer pricing
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Coordinated R&D incentives and startup-friendly loss relief
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Clear guidance on State aid compatibility
The submission further recommends aligning the regime with the EU’s digital agenda, leveraging tools such as the EU Company Certificate and European Business Wallet. A recognised EU “kitemark” could enhance trust and improve access to cross-border investment, particularly for VC and private equity.
CFE concludes that the 28th Regime should focus on practical simplification and coherence, rather than simply creating another legal form. If designed with these principles, the regime could become a meaningful instrument to support innovation, competitiveness, and scale-up growth in the Single Market.
We invite you the read the Statement and remain available for any queries you may have.