Private Equity and Venture Capital in Europe

6.5. Fiscal Framework for Equity Investors and Vehicles: The EU Condition

Chapters 4 and 5 demonstrated that many differences among EU countries persist despite efforts to create a standardized legal environment for the private equity industry. Tax procedures are different because of dissimilar legal systems and the level of country development.

Previous chapters showed that EVCA proposed a way to appraise the ability of a country’s fiscal system to spur the private equity and venture capital industry: calculate a comprehensive score from 1 (the best) to 3 (the worst) by rating these items:

• Tax environment for most usable fund structure
• Presence of fiscal or incentive schemes for private equity and venture capital investment
• Tax environment ...