EU Consultation on a new corporate tax framework (BEFIT)
In its communication Business Taxation for the 21st Century (See MIT News 19 May 2021), the Commission announced that a proposal for a new corporate tax system will be put forward by 2023. This objective of this proposal, known as ‘Business in Europe: Framework for Income Taxation’, or ‘BEFIT’ will be to: (i) boost the competitiveness of the single market; (ii) reduce compliance costs, including for SMEs; and (iii) to support investment in the EU.
BEFIT is a new set of rules to replace 27 different corporate tax systems for businesses. The proposal will build on initiatives such as the 2011 Common Consolidated Corporate Tax Base (CCCTB) and the two 2016 Common Corporate Tax Base (CCTB) and (CCCTB) proposals.
A consultation has been launched to obtain the public’s views on the problem definition and aims, including in the various policy options, to design the main features of BEFIT:
- the scope of the new system;
- how to calculate the common tax base;
- how to consolidate the individual tax bases of the members of the BEFIT Group and allocate the consolidated base across EU countries;
- how to allocate profit for transactions with businesses or companies outside the BEFIT Group; and
- what administrative simplifications could be introduced with the proposal.
HAVE YOUR SAY – follow this link to access the questionnaire.