EU: Recommendations for tax transparency, coordination adopted

EU recommendations for tax transparency

A report that addresses aggressive tax planning and promotes tax transparency has been approved by a permanent committee of the EU Parliament. The report approved by the Economic and Monetary Affairs (ECON) Committee includes a number of recommendations for bringing transparency, coordination, and convergence to corporate tax policies in the EU. The report will now be subject to a vote by the European Parliament on 16 December 2015. If it is approved, the European Commission will have to respond to the recommendations within three months, by either submitting a legislative proposal or giving an explanation for not doing so.

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Tax transparency proposals

Among the recommendations in the ECON Committee’s report are proposals for tax transparency—including country-by-country reporting and extending the automatic exchange of information to all tax rulings and making them public to a certain extent (i.e., list of companies having rulings, and anonymized summary of main rulings).

The report also recommends that a “common corporate tax base” (CCTB) be implemented by June 2016, with exemptions provided for small and medium-sized entities (SMEs) and companies with no cross-border activities, and that a full “common consolidated corporate tax base” (CCCTB) be implemented by the end of 2017. In the meantime, a temporary cross-border loss offset regime would be implemented.

 

Read a December 2015 report [PDF 183 KB] prepared by KPMG’s EU Tax Centre: ECON Committee votes on the report ‘Bringing transparency, coordination and convergence to Corporate Tax policies in the EU’

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