Tuesday, 2 August 2016

ECOFIN agrees EU-wide rules in Anti-Tax Avoidance Directive

The EU Member States, via ECOFIN, reached agreement on the Anti-Tax Avoidance Directive on 17 June. ATAD is part of the Anti-Tax Avoidance Package presented on 28 January 2016. The agreement requires Member States to enact laws that largely implement BEPS outcomes on interest limitation rules, hybrid mismatches and CFCs, plus additional measures on exit taxation and a general anti-abuse rule (GAAR). The switch-over clause to require a tax credit rather an exemption on certain income was dropped.

ATAD may have a bigger impact in some Member States than others (particularly those that don't currently have CFC rules for example). But most Member States will have to make some changes to their existing tax regimes.

Source & more info: PwC