Boost Social Economy Through Tax Policy, European Commission Says

European Union countries should review their tax systems to ensure that they encourage and do not hinder social economy enterprises that prioritize community or environmental causes, the European Commission said.

Few EU countries “have established a consistent taxation framework that encourages the development of the sector, including tax incentives tailored to the needs of the social economy,” the Commission said, in a draft recommendation issued Tuesday.

Countries could, for example, offer more tax breaks for donations to social enterprises, including donations from other EU countries, and could provide tax exemptions for retained profits within companies with social goals, the draft ...