On Thursday 4 March, the European Commission outlined its main lines of thought on business taxation adapted to the 21st century by publishing a specific roadmap.
The Commission’s communication on the subject is now scheduled for April and will not be accompanied by any legislative proposals, the document points out. Its objective: to present a vision for business taxation in the European Union and a medium-term programme for the Commission’s action in this field.
The text will of course address the international discussions at the OECD on taxation of the digital economy and minimum effective corporate taxation (see EUROPE 12667/4) and how these negotiations will be articulated with EU actions.
The communication will also take stock of the Commission’s pending tax proposals, such as the Common Consolidated Corporate Tax Base (CCCTB). And it will propose “the way forward towards an EU corporate tax framework fit for the 21st century”.
Fiscal policies will have a role to play in the post-Covid-19 economy to support a rapid and sustainable economic recovery, says the Commission. The challenges arising from the pandemic and the economic crisis will be exacerbated by major developments already underway, such as an ageing population, globalisation, digitisation of the economy, and climate change, it explains.
The patchwork of business tax systems in the EU creates loopholes that can be exploited for aggressive tax planning or, conversely, lead to double taxation, the Commission points out.
All these considerations generate, according to the Commission, the need for a new “global and ambitious vision” for business taxation.
See the Commission’s roadmap: http://bit.ly/3qld2sb (Original version in French by Marion Fontana)