EU Commission’s CCCTB proposals need careful business consideration

Following the package of tax proposals announced by the European Commission today, including a new proposal for a CCCTB (Common Consolidated Corporate Tax Base),

BusinessEurope Director General Markus J. Beyrer made the following comment:

“In today’s revised CCCTB proposal the Commission has recognised that corporate tax systems can have an impact in supporting investment and growth. We see positive new provisions to promote R&D investment, address debt/equity biases and allow SME’s to choose whether they wish to join the CCCTB regime. Nevertheless, the CCCTB will have wide-ranging implications for many businesses and we will need to discuss the proposal in detail with members before developing a full position. In particular, we are concerned that the proposal for consolidation of profits between member states risks being left behind and that the proposal is now mandatory for large companies.”

Regarding the Commission’s proposal for a Double Taxation Dispute Resolution Mechanism, BusinessEurope believes that many businesses will very much welcome the Commission’s long over-due proposal to improve the EU’s double taxation dispute resolution mechanism. Today, far too many companies face double taxation when two or more member states claim taxes on the same profit. The Commission’s proposal can help to ensure that disputes between two or more member states claiming corporate tax can now be resolved more quickly and more decisively.