EU tightens tax rules for big business
After five years of discussions, representatives of the European Union states and members of the European Parliament have nevertheless agreed on new tax rules for especially large enterprises. According to the new tax rules, published on June 1, international companies will have to provide data on the amount of taxes and in which particular EU country they pay them (Country-by-Country-Reporting).
The new rules will affect the following firms:
- With an annual revenue of over 750 million euros;
- Operating in more than one country;
- Their branches and subsidiaries.
Information about the turnover, profit and loss of the company will be published on the Internet. A uniform form and machine-readable format will be used to avoid fraud.
The rules, which are designed to promote tax transparency, are expected to be reviewed in four years and amended as necessary, the statement said. To enter into force, the rules must be approved by the committees of the European Parliament for economics, financial policy and legal affairs, as well as by the European Parliament itself and the Council of the European Union. This is expected to happen after the summer break.
It should be remembered that disputes over tax rules within the EU have been going on for more than five years. In 2016, the European Commission presented a proposal for the introduction of Country-by-Country-Reporting, which was supported by the European Parliament a year later. EU member states accepted the proposal only in the spring of 2021, after which discussions began on the details.
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