“Considering the scope and regulatory significance of the banking services provided by PPF banka and Air Bank, which both have their domicile in the Czech Republic, the Czech National Bank is already the consolidating supervisory authority for the group of companies controlled by PPF Financial Holdings B.V. The change of domicile to the Czech Republic will simplify the supervisory and licensing processes, translating into lower operating costs. The decision to move PPF Financial Holdings to the Czech Republic was taken by PPF Group management last year,” said Kateřina Jirásková, CFO of PPF Group.
In recent years, Czech and Dutch investment protection regulations have aligned, and one of the key reasons for maintaining the registration of PPF Financial Holdings in the Netherlands has consequently become obsolete. Moreover, since mid-2018, PPF Financial Holdings has been issuing bonds on the regulated capital market in the Czech Republic. It is therefore sensible to domicile the issuer in the country selected as its reference state and apply its legal framework to set legal relations with its creditors.
Moving PPF Financial Holdings from the Netherlands to the Czech Republic is a logical step in organization of the Group’s activities in the financial sector. From a tax perspective,
the move will have a little material impact since PPF Financial Holdings always settles its tax liabilities in the country where it operates and makes profit.
