On Tuesday 28 May, the EU Council’s Working Party on direct taxation discussed the Business in Europe: Framework for Income Taxation (BEFIT) initiative.
The European Commission presented the initiative in detail to Member State experts and explained the technical points. According to our information, Member States have asked numerous questions about the implications of this text for the implementation of pillar II of the OECD agreement on the minimum level of taxation of companies.
The directive transposing this agreement came into force in January 2024 (see EUROPE 13320/17). Five Member States have even made use of the provision in Article 50 of the Directive, which permits the application of certain provisions to be delayed (see EUROPE 13283/25).
The ‘BEFIT’ Regulation is likely to have a number of consequences for taxation systems within Member States. They therefore want to take time to analyse the consequences of this.
In their opinion, members of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) have rightly emphasised the importance of taking account of the directive transposing pillar II into ‘BEFIT’ (see EUROPE 13351/5). (Original version in French by Anne Damiani)