30 Amendments of Eva Maria POPTCHEVA related to 2023/0321(CNS)
Amendment 83 #
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2a) The lack of a common corporate tax system hinders competitiveness and creates a disadvantage compare to other markets. This initiative would combat tax avoidance while supporting growth, investment, innovation and job creation.
Amendment 95 #
Proposal for a directive
Recital 6
Recital 6
(6) It is indeed critical to create a system that achieves a degree of uniformity across the Union, at least amongst the taxpayers that it is chiefly addressed to. Accordingly, and considering the efforts that both tax administrations and businesses have made in order to implement the framework of a global minimum level of taxation, it would be important to capitalise on this achievement and design rules that remain as close as possible to the OECD/G20 Model Rules and Directive (EU) 2022/2523. On this basis, the common framework of rules should begin by being mandatory for groups with a taxable presence in the Union provided that they have annual combined revenues of more than EUR 750 000 000 based on their consolidated financial statements. In this way, the scope would thus be targeted aarget from the start businesses that are most likely to have cross-border activities and, thereby, can benefit from the simplification which a common legal framework would offer. The threshold would also provide alignment with Directive (EU) 2022/2523 for a consistent approach in the Union. Adherence to BEFIT should remain voluntary for the rest of the cross-border groups and it should be promoted. The Commission should review the benefits of expanding the scope to cover all cross-border groups.
Amendment 117 #
Proposal for a directive
Recital 12
Recital 12
(12) To achieve the key objective of creating a simplified corporate tax framework, the preliminary tax results for each group member should be aggregated into one single common tax base, in order to subsequently allocate this base to eligible group members. The tax adjustments to the financial statements would produce preliminary tax results for each group member. These results would then be aggregated, which would allow for cross-border loss relief between BEFIT group members, and subsequently, the aggregated tax base would be allocated to group members based on a transition allocation rule; this would pave the way towards a permanent mechanism. That permanent mechanism could be based on a formulary apportionment and would render the need for intra-BEFIT group transactions to be consistent with the arm’s length principle redundant. It would have the advantage of using more recent country-by-country reporting (‘CbCR’) data and the information gathered during the transition period. This will also allow for a more thorough assessment of the impact that the implementation of the two-pillar approach is expected to have on national tax bases and the BEFIT group tax bases. In this way, it would stillformulary apportionment. This formula would weight sales by destination and the location of assets and labour. This formula would render the need for intra-BEFIT group transactions to be come possible to materialise the key objective of tax neutrality in the internal market, which would reduce instances of double and over-taxation and enhance tax certainty with the aim of reducing the number of tax disputesnsistent with the arm’s length principle redundant.
Amendment 123 #
Proposal for a directive
Recital 12 a (new)
Recital 12 a (new)
(12a) That Commission would review the allocation formula after its implementation to benefit from more recent country-by-country reporting (‘CbCR’) data and a thorough assessment of the impact of the two-pillar approach on national tax bases and the BEFIT group tax bases. The formula would also aim to reflect the importance of the market where the company conducts its business and it would include intangible assets.
Amendment 271 #
Proposal for a directive
Article 45 – title
Article 45 – title
Amendment 272 #
Proposal for a directive
Article 45 – paragraph 1 – subparagraph 1
Article 45 – paragraph 1 – subparagraph 1
Amendment 277 #
Proposal for a directive
Article 45 – paragraph 1 – subparagraph 2
Article 45 – paragraph 1 – subparagraph 2
Amendment 278 #
Proposal for a directive
Article 45 – paragraph 2 – introductory part
Article 45 – paragraph 2 – introductory part
2. The baseline allocation percentage for each BEFIT group member shall be the result of the following computation:labour factor shall consist, as to one half, of the total amount of the payroll of a BEFIT group member as its numerator and the total amount of the payroll of the BEFIT group as its denominator, and as to the other half, of the number of employees of a BEFIT group member as its numerator and the number of employees of the BEFIT group as its denominator. Where an individual employee is included in the labour factor of a BEFIT group member, the payroll relating to that employee shall be allocated to the labour factor of the same BEFIT group member. The number of employees shall be measured at the end of the tax year and the definition of an employee shall be determined by the national law of the Member State where the employment is exercised.
Amendment 279 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 1
Article 45 – paragraph 2 – subparagraph 1
Amendment 282 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2
Article 45 – paragraph 2 – subparagraph 2
Amendment 283 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 1
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 1
Amendment 284 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 2
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 2
Amendment 285 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 3
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 3
Amendment 286 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 4
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 4
Amendment 287 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 5
Article 45 – paragraph 2 – subparagraph 2 – point a – paragraph 5
Amendment 288 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2 – point b
Article 45 – paragraph 2 – subparagraph 2 – point b
Amendment 290 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 3
Article 45 – paragraph 2 – subparagraph 3
Amendment 294 #
Proposal for a directive
Article 45 – paragraph 3 – introductory part
Article 45 – paragraph 3 – introductory part
3. For the purpose of paragraph 2, Member States shall structure their risk assessment framework for the pricing of intra-BEFIT group transactions as follows:Employees shall be included in the labour factor of the group member from which they receive remuneration. By way of derogation, where employees physically exercise their employment under the control and responsibility of an entity other than that from which they receive remuneration, those employees as well as the amount of payroll related to them shall be included in the labour factor of the former entity. This rule shall only apply where all of the following conditions are met: (a) the employment lasts for an uninterrupted period of at least three months; (b) those employees represent at least 5 % of the overall number of employees of the group member from which they receive remuneration. Employees shall include persons who, although not employed directly by a BEFIT group member, perform tasks similar to those performed by employees. Payroll shall include all costs of salaries, wages, bonuses and all other employee compensation, including related pension and social security costs borne by the employer as well as expenses of the employer corresponding to the cost of persons as referred to in this paragraph. Payroll costs shall be valued at the amount of expenses that are treated as deductible by the employer in a tax year.
Amendment 295 #
Proposal for a directive
Article 45 – paragraph 3 – point a
Article 45 – paragraph 3 – point a
Amendment 297 #
Proposal for a directive
Article 45 – paragraph 3 – point b
Article 45 – paragraph 3 – point b
Amendment 300 #
Proposal for a directive
Article 45 – paragraph 4 – subparagraph 1 – introductory part
Article 45 – paragraph 4 – subparagraph 1 – introductory part
Amendment 301 #
Proposal for a directive
Article 45 – paragraph 4 – subparagraph 1 – point a
Article 45 – paragraph 4 – subparagraph 1 – point a
Amendment 302 #
Proposal for a directive
Article 45 – paragraph 4 – subparagraph 1 – point b
Article 45 – paragraph 4 – subparagraph 1 – point b
Amendment 304 #
Proposal for a directive
Article 45 – paragraph 4 – subparagraph 2
Article 45 – paragraph 4 – subparagraph 2
Amendment 305 #
Proposal for a directive
Article 45 – paragraph 4 – subparagraph 2 a (new)
Article 45 – paragraph 4 – subparagraph 2 a (new)
Regarding valuation, the following rules shall apply: (a) Land and other non-depreciable fixed tangible assets shall be valued at their original cost. (b) An individually depreciable fixed tangible asset shall be valued at the average of its value for tax purposes at the beginning and at the end of a tax year. Where, as a result of one or more intra- group transactions, an individually depreciable fixed tangible asset is included in the asset factor of a BEFIT group member for less than a tax year, the value to be taken into account shall be calculated having regard to the number of months that the asset was included in the asset factor of that BEFIT group member. (c) The renter or lessee of an asset of which it is not the economic owner shall value that rented or leased asset at eight times the net annual rental or lease payment due, less any amounts receivable from sub-rentals or sub-leases. A BEFIT group member renting out or leasing an asset of which it is not its economic owner shall value that rented or leased asset at eight times the net annual rental or lease payment due. (d) An asset sold by a BEFIT group member to a person outside the BEFIT group following an intra-group transfer in the same or the previous tax year shall be included in the asset factor of the transferring BEFIT group member for the period between the intra-group transfer and the sale to the person outside the BEFIT group, except where the BEFIT group members concerned demonstrate that the intra-group transfer was made for genuine commercial reasons.
Amendment 306 #
Proposal for a directive
Article 45 – paragraph 5
Article 45 – paragraph 5
5. Notwithstanding Article 13(2), the exceThe sales factor shall consist of the total sales allocated to a BEFIT group member as its numerator and the total sales of the BEFIT group as its denominator. Sales of goods shall be included in the sales factor of the BEFIT group member located ing borrowing costs as referred to in Article 2 of Council Directive (EU) 2016/1164 which arise from a transaction between BEFIT group members shall not be recogniz the Member State where the dispatch or transport of the goods to the person acquiring them ends. Where that place cannot be determined, the sales of goods shall be attributed to the BEFIT group member located in the Member State of the last identifiable location of the goods. Supplies of services shall be included in the sales factor of the BEFIT group member located in the Member State where the services are physically carried out or actually supplied. Where there is no BEFIT group member in the Member State where the goods are delivered for the purpose of computing the baseline allocation percentage of the BEFIT group member which incurs such costservices are supplied, or where goods are delivered or services are supplied in a third country, the sales of goods and supplies of services shall be included in the sales factor of all BEFIT group members in proportion to their labour and asset factors. Where there is more than one BEFIT group member in the Member State where the goods are delivered or the services are supplied, the sales shall be included in the sales factor of all BEFIT group members located in that Member State in proportion to their labour and asset factors.
Amendment 309 #
Proposal for a directive
Article 45 – paragraph 6
Article 45 – paragraph 6
6. If the structure of the BEFIT group changes during the transition period refThe Commission is empowerred to in paragraph 1 due to new members joining the group or members leaving the group, the baseline allocation percentage shall be re- computed in accordance with paragraph 2. For each BEFIT group member, the BEFIT tax baseadopt delegated acts in accordance with Article 74 to supplement this Directive by laying down detailed rules on the calculation of the labour, asset and shall be allocated in accordance with the new baseline allocation percentage for the time that remains until the end of this period, unless subsequent changes in the structure of the BEFIT group require a new re-computation of the baseline allocation percentagees factors, the allocation of employees and payroll, assets and sales to the respective factor and the valuation of assets.
Amendment 311 #
Proposal for a directive
Article 45 – paragraph 7
Article 45 – paragraph 7
Amendment 312 #
Proposal for a directive
Article 45 – paragraph 8
Article 45 – paragraph 8
Amendment 315 #
Proposal for a directive
Article 45 – paragraph 9
Article 45 – paragraph 9
9. The Commission shall carry out a comprehensive review of the transiallocation rule as part of which it shall prepare a study on the possible composition and weight of selectedinclusion of elements such as intangible assets and the presence in a market as formula factors and submit a report to the Council by the end of the third fiscal year during the transition period referred to in paragraph 1after the approval of this Directive. If the Commission deems it appropriate, taking into account the conclusions of this report, it may adopt a legislative proposal during the transition period, to amend this Directive by introducing a method for the allocation of the BEFIT tax base using formulary apportionment and based on factors, to amend this Directive.