Income Taxes Act amended to facilitate cross-border mergers

From 1 July 2008, the Income Taxes Act will be amended to facilitate cross-border mergers of limited liability companies, in connection with the implementation of Directive 2005/56/EC on cross-border mergers of limited liability companies.

The most important changes include:

• provisions on depreciation of long-term assets, to ensure an equal tax treatment of cross-border and domestic situations (mergers); and
• rules to ensure the carry-over of any reserves, provisi…