[ParlTrack]

Proposal for a directive
Recital 7

(7) To effectively address the tax- related debt-equity bias in a manner sustainable for the Union’s public finances, an allowance for equity financing should be accompanied by a limitation on the deductibility of debt financing costs. An interest limitation rule should therefore limit the deductibility of exceeding borrowing costs and apply independently from the allowance. Given the different objectives between such a rule and the existing anti-tax avoidance rule on interest limitation of Article 4 of Directive (EU) 2016/1164, both rules should be maintained. Taxpayers should first calculate the deductibility of exceeding borrowing costs under this Directive and then under ATAD. In the event that the latter results in a lower amount of deductible exceeding borrowing costs, the taxpayer should deduct this lower amount and carry forward or back any difference between the two amounts in accordance with Article 4 of ATAD.deleted

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Recital 9

(9) In order to evaluate the effectiveness of this Directive, the Commission should prepare and publish an evaluation report on the basis of the information provided by Member States and of other available data. In its report, the Commission should assess in particular the suitability and effectiveness of the provisions in this Directive for SMEs and whether to extend the regime to a company's entire equity rather than its incremental equity increase. The report should be accompanied by a legislative proposal where appropriate.

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1

An allowance on equity shall be deductible, for 105 consecutive tax periods, from the taxable base of a taxpayer for corporate income tax purposes up to 350% of the taxpayer's earnings before interest, tax, depreciation and amortisation (“EBITDA ”).

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Article 4 – paragraph 1 – subparagraph 3

Member States shall ensure that the taxpayers may carry forward, for a maximum of 5 tax periods, the part of the allowance on equity which exceeds 350% of EBITDA in a tax period.

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Article 4 – paragraph 2 – subparagraph 2

The allowance on equity shall be equal to the base of the allowance multiplied by the 10-year risk-free interest rate for the relevant currency and increased by a risk premium of 1.5% or, where the taxpayer is an SME, a risk premium of 12.5%.

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Article 6

1. Member States shall ensure that a taxpayer is able to deduct from its taxable base for corporate income tax purposes exceeding borrowing costs as defined in Article 1, point (2), of Council Directive (EU) 2016/116435 up to an amount (a) corresponding to 85% of such costs incurred during the tax period. If such amount is higher than the amount (b) determined in accordance with Article 4 of Directive (EU) 2016/1164, Member States shall ensure that the taxpayer be entitled to deduct only the lower of the two amounts in the tax period. The difference between the two amounts (a) and (b) shall be carried forward or back in accordance with Article 4 of Directive (EU) 2016/1164. 2. Paragraph 1 shall apply to exceeding borrowing costs incurred from [OP insert the date of entry into force of this Directive]. _________________ 35 Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market (OJ L 193, 19.7.2016, p. 1).Article 6 deleted Limitation to Interest Deduction

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Article 8 – title

Reports and review

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Article 8 – paragraph 2

2. ~~When drawing up the~~In its report, the European Commission shall ~~take into account the information communicated by Member States pursuant to Article 7.~~ in particular assess: a) the suitability of the provisions for small and medium-sized enterprises; b) whether the scope of this directive shall be extended to the entirety of a company's equity.

2023/01/19
Committee: ECON

Markus FERBER

Proposal for a directive
Article 8 – paragraph 3

3. The Commission shall publish the report on its website. The report shall be accompanied by a legislative proposal where appropriate.

2023/01/19
Committee: ECON

9 Amendments of Markus FERBER related to 2022/0154(CNS)

ParlTrack - 2011-2024