Wednesday, 23 November 2016

EU tax proposals seek to harmonise corporate tax bases, apply formulary apportionment, further address hybrid mismatches and improve tax dispute resolution P

The European Commission (EC) published four new draft European Union (EU) Directives on 25 October 2016 concerning the:

  • Common Corporate Tax Base (CCTB)
  • Common Consolidated Corporate Tax Base (CCCTB)
  • Anti-Tax Avoidance Directive II (hybrids), and
  • Dispute Resolution.

There are a number of detailed requirements that potentially could impact companies and groups. The CCTB and CCCTB Directive will be mandatory only for large groups. Others will be able to opt-in to the consolidation and single filing approach.
The CCTB may have different implications for individual companies and groups, as well as for Member States, in terms of revenue generation. However, Member States retain sovereignty to adjust their tax rates to compensate for lost revenue. The impact assessment and separate economic modelling suggest that the CCCTB could lift investment in the EU by up to 3.4% and growth by 1.2%.
Source & more info: PwC