Titled 'A Fair and Efficient Corporate Tax System in the European Union', the plan identifies a number of measures designed to address corporate tax challenges and issues of abuse. This technical briefing provides a detailed summary of the key points.
Addressing the challenges
The European Commission's action plan is aimed at achieving a fair and simple tax code within the EU, whilst encouraging certain non-EU countries to embrace good tax governance. The Action Plan includes:
- The re-launch of the Common Consolidated Corporate Tax Base (CCCTB)
- a number of initiatives to ensure effective taxation where profits are generated
- measures for a better tax environment for business
- a public consultation aimed at improving tax transparency
- a list of non-cooperative tax jurisdictions.
A central piece of the action plan – the re-launch of the CCCTB – is a 'very ambitious initiative', although it will have a number of advantages. This ambitious plan has been developed at a time when the Organisation for Economic Co-operation and Development (OECD) is working to address Base Erosion and Profit Shifting (BEPS). It will be interesting to see whether a number of Member States will adopt the CCCTB under an enhanced cooperation model.
Talk to your local firm to understand more about the action plan and how it could affect your business.