CFE Tax Advisers Europe submitted a statement on the proposed “28th Regime” and note, among other things:

CFE strongly supports the objective of creating a simplified EU-wide entity structure to facilitate the expansion of start-ups and scale-ups. Past experience with European legal forms, particularly Societas Europaea (SE), indicate that a new structure can only succeed if it resolves the fundamental tax, administrative and compliance issues that continue to fragment the Internal Market. CFE recognises that this initiative builds on wider EU efforts to strengthen competitiveness, deepen the market integration and support Europe’s transition towards innovation-driven growth.

There are persistent tax-related obstacles for start-ups expanding cross-border, including divergent corporate tax rules across the EU, inconsistent access to tax incentives, and multiple uncoordinated filing obligations. Drawing lessons from the limited uptake of the SE, we underline that an EU entity without meaningful tax simplification risks repeating past shortcomings.

CFE therefore recommends that the 28th Regime prioritise practical simplification and coordination. Measures such as a single EU tax filing interface, harmonised documentation standards, and EU-wide safe harbours for transfer pricing would provide immediate value. A startup-friendly loss relief mechanism and a coordinated approach to R&D incentives would further enhance the attractiveness of the regime, while clear rules on State aid compatibility would ensure legal certainty.