Council of the European Union 23 July 1990, Council Directive 90/434/EEC of 23 July 1990 on the common system of taxation applicable to mergers, divisions, transfers of assets and exchanges of shares concerning companies of different Member States

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The Council Directive 90/434/EEC establishes a common taxation system for mergers, divisions, transfers of assets, and exchanges of shares involving companies from different Member States, aiming to eliminate tax-related barriers that distort competition and hinder the internal market. Key provisions include the non-taxation of capital gains during such operations, the carryover of tax-exempt provisions and reserves, and the treatment of losses for tax purposes, while allowing Member States to refuse application in cases of tax evasion or avoidance. Enforcement requires Member States to implement necessary laws and regulations by January 1, 1992, with specific provisions for Portugal extending to January 1, 1993.AI