NATIONAL EUROPEAN RULES

FOR RETAINING DOCUMENTS

In Europe, there is no “one size fits all” approach to

the time period for which documents should be

retained. Each country sets its own rules, which vary

among different business sectors.

Unfortunately, limitation periods vary enormously

across Europe. Greece, Ireland, Northern Ireland, and

the UK (England and Wales) have a limitation period

of six years for most actions. In Finland, France,

Luxembourg, Sweden, and Switzerland, a ten-year

limitation period is common. In Austria, France, and

Belgium, limitation periods may extend up to thirty

years for certain types of claims.

A few sample comparisons may be in order. In order

to meet the relevant limitation period (a) in the United

States, supply contracts for goods and services—

which can include distribution, licensing, and agency

contracts—must be retained until five fiscal years

after the contracts expire. In the UK and Ireland,

supply contracts and other general commercial

contracts must be kept for the term of the contract

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plus seven years; in Poland, the term plus five years;

and in France, for the term plus ten years.

In the United States, a lease document must be

retained for the term of the lease plus five fiscal years.

In the UK and Ireland, the document must be kept for

the term plus twelve years. In Germany, the retention

period is the term of the lease plus six years,

commencing on the end of calendar year in which the

term ended. In Poland, the retention period is broadly

the term of the lease plus five years from the date the

final tax payment is made in relation to the lease. In

France, lease documents need to be retained for a

much longer period: the term of the lease plus thirty

years.

Following table will give an overview of retention

periods of several European Countries.

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Sample Retention Periods in Europe Record-type Category US UK Ireland France Germany Poland CORPORATE/ SECURITIES Board Meeting Minutes Permanent Permanent Permanent Permanent 10 years commencing

on the end of calendar year in which the minutes were produced

Permanent

Stock Certificates (canceled) None 15 years from date of cancellation

Permanent None None None

Stock Option Files 5 fiscal years Permanent Permanent 30 years (from the date the instrument ceases to be effective, e.g., winding up of the company)

Clearance certificate required from the relevant tax department before disposal

Usually 5 years from the final tax payment

ACCOUNTING/ FINANCE Accounts Payable/Receivable 5 fiscal years Current fiscal year

+ 7 years Current fiscal year + 7 years

10 fiscal years 10 years commencing on the end of calendar year in which the accounts were conducted

Current fiscal year + 5 years (annual financial statements shall be retained permanently)

ACQUISITIONS/DIVESTITURES Executed Agreements and Schedules Permanent Length of warranty

period Length of warranty period or 7 years, whichever is greater (assuming contract not under seal)

Permanent 10 years commencing on the end of calendar year in which the agreement was executed

Documentation shall be retained for a period that is usually 5 years from the final tax payment

Transaction-related Correspondence 5 fiscal years Length of warranty period

Length of warranty period or 7 years, whichever is greater (assuming contract not under seal)

10 years 6 years commencing on the end of calendar year in which the correspondence was produced, insofar as relevant for accounting purposes

None

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Record-type Category US UK Ireland France Germany Poland AGREEMENTS (normal course of business)

Supply Contracts Term of contract + 5 fiscal years

Term of contract + 7 years

Term of contract + 7 years

Term of contract + 10 years

6 years after expiration of the agreement, commencing on the end of calendar year in which the agreement expired

Usually 5 years from the final tax payment

HUMAN RESOURCES Personnel File None Litigation view is 7

years past the end of employment

7 years following cessation of employment

Litigation view is 30 years past the end of employment

Generally, no mandatory regulations for employment law, but with respect to contractual or statutory limitation periods, the document shall be stored at least for the term of the aforesaid periods

Litigation view is 3 years past the end of employment. However, in case of payroll sheets, it is 50 years from the end of the employment of the given employee and, in case of timesheets, 10 years past the end of employment.

REAL ESTATE DOCUMENTS Leases Term + 5

fiscal years Term + 12 years Term + 12 years Term + 30 years Term + 6 years

commencing on the end of calendar year in which the term ended

Usually 5 years from the final tax payment

TAX Tax returns (income, franchise, property) Permanent Current fiscal year

+ 5 years Current fiscal year + 5 years

Current fiscal year + 6 years

10 years commencing the end of calendar year in which the return was filed

Usually 5 years from the final tax payment

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