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The European Commission (EC) are committed to introducing a common corporate income tax system across the EU. The previous iterations - the Common (Consolidated) Corporate Tax base (CCCTB) 2011 and Common Corporate Tax Base (CCTB) are now withdrawn and replaced with the BEFIT Proposal. It remains to be seen if BEFIT will achieve the unanimous support required from Member States.
With the BEFIT proposals, the EC aims to reduce compliance costs, simplify tax rules and reduce the administrative burden on MNE’s and SME’s, as well as making life easier for Tax authorities. Monique and Sasha consider the new proposals and whether they achieve the stated aims.
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The European Commission (EC) has adopted key initiatives, which aim to reduce compliance costs for large businesses operating across the European Union. The BEFIT proposal introduces a single set of rules to determine the tax base for large businesses that operate out of more than one Member State.