EU’s anti-hybrid mismatch rules are in effect as of
January 1, 2020: are you ready?
Ringing in the new year, the European Union’s (EU) anti-hybrid mismatch rules became effective as of January 1, 2020!
The EU’s 2017 Council Directive 2017/952 (ATAD II) mandated EU member states to implement anti-hybrid mismatch rules into local law by December 31, 2019. Many member states, such as Luxembourg, the Netherlands and France, completed their domestic legislation quite late in December 2019. The German legislative adoption process was started even later with a December 2019 draft bill that was quickly retracted; a revised version is expected in late January 2020 at the earliest.
Although the ATAD II defines the general framework of the hybrid mismatch rules, the recent legislative developments reflect that its local implementation is not fully harmonized within the EU and that each EU member state may have captured the complexity of the matter with a varying degree of sophistication. As of January 1, 2020, any assessment of the impact of the hybrid mismatch rules on any intercompany arrangement will require in-depth knowledge of the locally applicable law in multiple jurisdictions. Careful study and interpretation of hybrid mismatch rules in multiple EU jurisdictions will become the new normal and a required procedure for intercompany transactions with EU member state businesses.
The objective of this special edition webcast is to provide an up-to-date overview of the ATAD II implementation in the EU. Comparisons to, and interactions with, the US anti-hybrid rules will also be discussed. Panelists will present the latest legislative developments and “hot spot” examples applicable to all EU jurisdictions, including: