Collectively, these measures will significantly improve the corporate tax environment in the EU, making it fairer, more efficient and more growth-friendly.
Key actions include a strategy to re-launch the Common Consolidated Corporate Tax Base (CCCTB) and a framework to ensure effective taxation where profits are generated. The Commission is also publishing a first pan-EU list of third-country non-cooperative tax jurisdictions and launching a public consultation to assess whether companies should have to publicly disclose certain tax information.
Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue said: "Today we have set out an ambitious yet realistic plan for fairer and more growth-friendly taxation in the EU. It rests on the core principle that all companies – big or small, local or global - must pay a fair share of tax where real economic activity is taking place and where their profits are actually made."
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said:"Corporate taxation in the EU needs radical reform. In the interests of growth, competitiveness and fairness, Member States need to pull together and everyone must pay their fair share. The Commission has today laid the foundation for a new approach to corporate taxation in the EU. Member States must now build on it."
The rules that govern corporate taxation in the EU today are out-of-step with the modern economy. Uncoordinated national measures are being exploited by some companies to escape taxation in the EU. This leads to significant revenue losses for Member States, a heavier tax burden for citizens and competitive distortions for businesses that pay their share.
To redress this situation, today's Action Plan sets out a new EU approach for fair and efficient corporate taxation. This will be achieved through a series of initiatives to be taken in the short, medium and long-term. These build on the measures already set out in the Tax Transparency Package, which the Commission presented in March. The measures outlined in this Action Plan also echo ongoing work at the OECD to limit tax base erosion and profit shifting.
Full press release
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