International Tax

ATAD III Update: European Parliament publishes proposed amendments

Sasha Kerins
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The European Parliament has published its approval of the European Commission’s draft proposal for Anti-Tax Avoidance Directive III (ATAD III) with recommended amendments.
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Current status of ATAD III 

The European Council (EC) will now decide whether to accept the European Parliament’s (EP) proposed amendments or whether to go back to the EP for a second reading. Despite suggestions from the European Parliament’s Committee on Economic and Monetary Affairs to extend the timeline for implementation, the EP has not included this within the proposed amendments and the date is still set for 1 January 2024.

The EP proposals appear stricter than those from the EC; lowering the first two gateways and companies with five full-time employees not being exempted from the legislation.

Details of the proposed amendments are available on the European Parliament's website.

ATAD III Update: European Parliament publishes further proposed amendments
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ATAD III Update: European Parliament publishes further proposed amendments
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How can we help?

Given the proposed implementation date, we recommend that entities begin assessing their current corporate structures to understand the potential consequences of ATAD III.

Grant Thornton’s international tax specialists can collaborate with you to review your company’s/companies’ current situation with regards to substance and possible exemptions, provide you with the latest information and insights on the detail in the Directive, and offer sensible guidance to be ready if the proposed Directive is passed and implemented.