BEFIT Directive proposal published

Earlier today, 12 September 2023, the European Commission adopted a package of initiatives intended to reduce tax  compliance costs for large, cross-border businesses in the EU.

The Proposal for a Council Directive on Business in Europe: Framework for Income Taxation (BEFIT) establishes a common set of rules to determine the tax base of companies that are part of a group which prepare consolidated financial statements and which are subject to corporate income taxation in a Member State.

The package also includes a proposal aiming at harmonising transfer pricing rules within the EU and ensuring a common approach to transfer pricing.

The proposed implementation dates are 1 July 2028 for BEFIT and 1 January 2026 for the transfer pricing proposal.