The European Commission (EC) today announced that the European Council adopted a directive aimed at improving transparency on tax rulings—including advance pricing arrangements (APAs)—given by EU Member States to companies concerning how certain specific taxation issues will be addressed.
As noted in the EC release, the directive requires EU Member States to exchange information automatically on advance cross-border tax rulings and APAs.
The EC announcement states that the directive is in line with developments within the OECD and its work on tax base erosion and profit shifting (BEPS) project.
The new rules will apply from 1 January 2017. Concerning rulings issued before 2017, the following will apply: