Legal and Tax Issues

This is a guide addressed to SMEs willing to participate to crowdfunding projects. It contains relevant FAQs having both legal and operational nature. It shall serve as a tool for the evolution of crowdfunding in Central-Eastern EU Member States.

First of all, the deliverable sheds light over the applicable EU definition of SME, given that crowdfunding is to be considered as a new form of alternative finance to be developed also to achieve the goals of the EU strategy on SMEs. Many legal inputs are provided which will hopefully help SMEs to adequately perform their roles with regard to crowdfunding projects. In particular, and not exclusively, legal tax issues are tackled in order to offer SMEs exhaustive answers. The question/answers sections also contain some references to national regulations as well.

Being a guide for selected users, the deliverable does not seek to draw down conclusions; rather, it was structured as an instruction manual written in an easily understandable language.

For the full research go to Country specific guides

References:

http://ec.europa.eu/eu2020/pdf/COMPLET%20EN%20BARROSO%20%20%20007%20-%20Europe%202020%20-%20EN%20version.pdf

http://ec.europa.eu/eurostat/statistics-explained/index.php/Statistics_on_small_and_medium-sized_enterprises

http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/586673/EPRS_BRI(2016)586673_EN.pdf

http://ec.europa.eu/growth/tools-databases/SME- Wizard/


FAQs

What are SMEs according to the applicable legal discipline?
According to EU discipline SMEs are enterprises that have a number of staff member which goes from less tan 10 (micro enterprises) to less than 250 (medium entreprises) and a turnover (or balance sheet total) which goes from less than 2 millions (micro) to less than 50 millions (or, respectively 43 millions for balance sheet). It is possible that each national legislation contains some different definition applicable for national regulation.

Which are the key directly applicable to crowdfunding that a SME should follow depending
on its role?

Pay attention to the existence of legal regulation specifically applicable to SMEs. In some countries (like Italy) equity crowdfunding is mainly dedicated just to the SMEs.

Which are the core tax law issues to consider in the context of a crowdfunding campaign?
Each kind of campaign carried on has different applicable tax regime. It must be defined clearly and respective formalities should be carried on in each step of the campaign realization.

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