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The European Commission has published a new plan for corporate tax reform

13 Jun
The European Commission has published a new plan for corporate tax reform CYWORLD WEALTH Advocate Cyprus

The European Commission has published a new plan for corporate tax reform

The European Commission has published a new plan for corporate tax reform

The main points of the Commission’s proposal are set out as follows:

  1. The general set of rules for improving the business environment in the Single Market Business in Europe: Income Taxation System (or BEFIT), designed to reduce bureaucracy, reduce compliance costs and minimize tax evasion.
  2. Providing more public transparency: requiring certain large companies to publish their effective tax rates.
  3. Supporting member states’ businesses in recovering from COVID-19, recommending that companies be allowed to offset their losses in 2020 and 2021 with taxes they paid until 2020.
  4. Countering the misuse of front companies: monitoring and reporting requirements for front companies so that tax authorities can better respond to aggressive tax planning.
  5. Eliminate debt-to-equity bias in corporate taxation. Encouraging companies to seek financing from capital rather than borrowed funds: proposal from DEBRA.

A key element of the EU’s long-term tax policy strategy is a 2023 proposal called Business in Europe: Income Tax System (BEFIT). The Communiqué of the European Commission states that BEFIT will create a single pan-European tax return for MNEs, which will greatly simplify the administration for companies doing business in the single market.

We draw your attention to the fact that this article is for informational purposes only. For more advice, contact us at the contacts listed on the site.

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