EU To Take a Big Step in Corporate Tax Reform

The EU Commission published the proposals for Common Consolidated Corporate Tax Base (CCCTB) directive, Common Corporate Tax Base (CCTB) directive, the Amendments for Anti-Tax Avoidance Directive and Double Taxation Dispute Resolution Mechanisms.


The CCCTB aims to establish a single set of rules and that will allow companies to work with their domestic tax administration to file one tax return for all of their EU activities. Companies will be able to offset profits in one member state against losses in another, while tax obstacles such as double taxation will be eliminated. In this way, the Commissions aims to increase tax certainty by providing a stable, transparent EU-wide system for corporate taxation. The new corporate taxation system will:

  • Be mandatory for large multinational groups with global revenues exceeding EUR 750 million;
  • Encourage companies to finance their activities through equity and by tapping into markets rather than turning to debt;
  • Support innovation through tax incentives for Research and Development (R&D) activities which are linked to real economic activity;
  • Tackle loopholes currently associated with profit-shifting for tax purposes.

Resolving Double Taxation Disputes

The Commission has proposed to adjust the current dispute resolution mechanisms to better meet the needs of businesses. The Commission informed that a wider range of cases will be covered and member states will have clear deadlines to agree on a binding solution to double taxation.

Anti-Tax Avoidance Directive

The Anti-Tax Avoidance Directive that was approved in July addresses mismatches within the EU. The amending proposal completes the picture by tackling mismatches with non-EU countries and is being made at the request of the Member States themselves.

Sources: EC Press Release, CCCTB, CCCTB Annexes, CCTB Annexes, Double Taxation Dispute Resolution, Anti-Tax Avoidance

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