BusinessTax

European Commission proposes new business taxation system

The proposal aims to create an equitable and stable business environment, which can boost sustainable and job-rich growth in the EU and increase an ‘open strategic autonomy’

The European Commission has proposed a new communication on business taxation to promote a “robust, efficient and fair” business tax system in the European Union.

The proposal aims to create an equitable and stable business environment, which can boost sustainable and job-rich growth in the EU and increase an “open strategic autonomy”.

First, the commission will present by 2023 a new framework for business taxation in the EU, which will reduce administrative burdens, remove tax obstacles and create a more business-friendly environment in the Single Market.

The “Business in Europe: Framework for Income Taxation” (BEFIT) will provide a single corporate tax rulebook for the EU, providing for “fairer” allocation of taxing rights between Member States.

BEFIT will aim to cut red tape, reduce compliance costs, minimise tax avoidance opportunities and support EU jobs and investment in the Single Market.

In addition, the commission will launch a broader reflection on the future of taxation in the EU, which will culminate in a Tax Symposium on the “EU tax mix on the road to 2050” in 2022.

Valdis Dombrovskis, executive VP for an economy that works for people, said: “Taxation needs to keep up to speed with our evolving economies and priorities. Our tax rules should support an inclusive recovery, be transparent and close the door on tax avoidance.

“They should also be efficient for businesses big and small. Today’s Communication will set the foundations for a corporate tax system in Europe that is fit for the 21st century, helping us to build a fairer and more sustainable society.”

Back to top button