EU Finance Ministers agree to strengthen the Code of Conduct on Business Taxation

At the ECOFIN Council meeting of 8 November 2022, EU Finance Ministers agreed on a revision to the Code of Conduct on Business Taxation, its first revision since 1997. This revision broadens the scope of the tax measures under scrutiny when examining harmful tax practices within the EU – whilst previously only preferential measures (such as special regimes or exemptions from the general taxation system) were examined under the Code of Conduct, the revised code brings within its scope ‘tax features of general application’ which create opportunities for double non-taxation or can lead to the double or multiple use of tax benefits.

The changes apply from 1 January 2023. However,  the changes concerning ‘tax features of general application’ as defined will apply from 1 January 2024, and will only be used for measures enacted or modified on or after 1 January 2023.