EU Economic Commissioner Paolo Gentiloni said on Monday that a planned reform of EU corporate taxation would replace national business tax rules.
On EU tax, he said the “Business in Europe Framework for Income Taxation,” or BEFIT, “will replace national corporate tax systems for companies, thus reducing compliance costs and barriers to cross-border investment”. Competition monday.
It will be based on a global deal on a two-stage corporate tax between more than 130 countries in 2021, and includes a reallocation of taxable profits (known as Pillar One) and a minimum corporate tax base of 15 percent ( Pillar Two), the EU is struggling to ratify due to subsequent vetoes first by Poland and now by Hungary.
But it “will go on,” Gentiloni said. It will have “the key features of a simplified common tax base and the allocation of taxable profits between member states”, thus reducing taxation policies within the bloc that countries seek to attract by luring businesses with favorable tax regimes.
Taxation initiatives are always difficult because they require the consent of all 27 EU countries.