45 Amendments of Eleni STAVROU related to 2023/0321(CNS)
Amendment 107 #
Proposal for a directive
Recital 10 a (new)
Recital 10 a (new)
(10a) In order to achieve the objective of a simplified tax framework and of this Directive adequately complementing the Directive (EU) 20XX/XX/EU on laying down rules on a debt-equity bias reduction allowance and on limiting the deductibility of interest for corporate income tax purposes, the rules laid down in this Directive should align with the ones provided in Directive (EU) 20XX/XX/EU on laying down rules on a debt-equity bias reduction allowance and on limiting the deductibility of interest for corporate income tax purposes, where applicable.
Amendment 119 #
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 beOne year before the end of the transitional period, the Commission shall present a thorough comprehensive review and an impact assessment, especially regarding the interaction of this Directive with Directive (EU) 2022/2523 of 14 December 2022, and suggest, if deemed necessary, a new legislative proposal that could establish a permanent mechanism based on a formulary apportionment and that 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 still become 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 disputes.
Amendment 145 #
Proposal for a directive
Recital 19
Recital 19
(19) To optimise the benefits of having a common legal framework for computing the corporate tax base in the internal market, the application of the rules should be optional for groups, including SME groups, who earn annual combined revenues of less than EUR 750 000 000 as long as they prepare consolidated financial statements and have a taxable presence in the Union. By keeping the application of the rules open to groups of a smaller size, more groups with cross-border structures and activities may benefit from the simplification that the common framework offers. The mandatory nature will be for MNE Groups, who earn an annual combined revenues of EUR 750 000 000 or more as defined in the scope of Directive (EU) 2022/2523 of 14 December 2022 and meet the 75% ownership threshold introduced in this Directive.
Amendment 161 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) they belong to a domestic group or to a multinational enterprise group (‘MNE group) which prepares consolidated financial statements and had annual combined revenues of EUR 750 000 000 or more in at least two of the last four fiscal years as defined in the scope of Directive (EU) 2022/2523 of 14 December 2022;
Amendment 165 #
Proposal for a directive
Article 2 – paragraph 2
Article 2 – paragraph 2
2. By way of derogation from paragraph 1, this Directive shall not apply to companies or permanent establishments with an ultimate parent entity outside the Union where the combined revenues of the group in the Union either do not exceed 5% of the total revenues for the group based on its consolidated financial statements or the amount of EUR 50 million in at least two of the last four fiscal years. This shall be without prejudice to the right of opting in under paragraph 7. The Commission in its review and report in accordance with Article 77 shall particularly take into account bilateral pre-accession tax treaties and assess their interaction with this derogation.
Amendment 168 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
3. Where two or more groups merge to form a single group, the threshold of EUR 750 000 000 referred to in paragraph 1 shall be deemed to be met for any fiscal year prior to the merger if the sum of the combined revenues of the merging groups for that fiscal year, as included in each of their consolidated financial statements, is EUR 750 000 000 or more. The companies and permanent establishments members of that newly formed group shall become subject to this Directive if that threshold as defined in the scope of Directive (EU) 2022/2523 of 14 December 2022 was met in at least two of the last four fiscal years.
Amendment 171 #
Proposal for a directive
Article 2 – paragraph 4
Article 2 – paragraph 4
4. Where a company that is not a member of a group (the ‘target’) is acquired by another company or a group (the ‘acquiring entity’) and either the target or the acquiring entity did not have consolidated financial statements in any of the four fiscal years immediately preceding the fiscal year of the acquisition, the threshold of annual combined revenues of EUR 750 000 000 referred to in paragraph 1 and as defined in the scope of Directive (EU) 2022/2523 of 14 December 2022 shall be deemed to be met for that year if the sum of the revenues included in the financial statements or consolidated financial statements of the target and the acquiring entity for that fiscal year is EUR 750 000 000 or more. The acquiring entity shall become subject to this Directive if that threshold was met in at least two of the four fiscal years immediately preceding the fiscal year in which this Directive started to apply to the acquiring entity.
Amendment 174 #
Proposal for a directive
Article 2 – paragraph 5 – introductory part
Article 2 – paragraph 5 – introductory part
5. Where there is a demerger of a group into two or more groups (the ‘demerged groups’), the threshold of EUR 750 000 000 referred to in paragraph 1 and as defined in the scope of Directive (EU) 2022/2523 of 14 December 2022, shall be deemed to be met by each of the demerged groups where:
Amendment 181 #
Proposal for a directive
Article 2 – paragraph 7
Article 2 – paragraph 7
7. Member States shall ensure that companies which are resident for tax purposes in a Member State and fulfil the conditions laid down in paragraph 1, point (b), including their permanent establishments located in other Member States, as well as permanent establishments, located in Member States, of third-country entities which fulfil the conditions of paragraph 1, point (c), may choose to be covered by this Directive if they belong to an MNE group or domestic group which prepares consolidated financial statements but does not fulfil the conditions laid down in paragraph 1, point (a) regarding the threshold of EUR 750 000 000 as defined in the scope of Directive (EU) 2022/2523 of 14 December 2022.
Amendment 186 #
Proposal for a directive
Article 3 – paragraph 1 – point 15
Article 3 – paragraph 1 – point 15
(15) ‘economic owner’ has the meaning attributed to it in previous proposals and specifically, means the person who receives substantially all the benefits and bears all the risks attached to a fixed asset, regardless of whether that person is the legal owner. A taxpayer who has the right to possess, use and dispose of a fixed asset and bears the risk of its loss or destruction shall in any event be considered the economic owner;
Amendment 193 #
Proposal for a directive
Article 7 – paragraph 4 a (new)
Article 7 – paragraph 4 a (new)
4a. Where it is not reasonably practicable to determine the financial accounting net income or loss of a constituent entity based on the acceptable financial accounting standard or authorised financial accounting standard used in the preparation of the consolidated financial statements of the ultimate parent entity, the financial accounting net income or loss of the constituent entity for the fiscal year may be determined using another acceptable financial accounting standard or an authorised financial accounting standard in accordance with the provisions outlined in Article 15 paragraph 2 of Directive (EU) 2022/2523 of 14 December 2022, where applicable;
Amendment 196 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
With the exception of financial assets held for trading, as referred to in Article 11(1), and investments made for the benefit of life insurance policyholders bearing the investment risk in the context of a unit- linked/index-linked life insurance policy, as referred to in Article 14, the financial accounting net income or loss of a BEFIT group member shall be adjusted to exclude 95100% of the amount of dividends or other distributions received or accrued during the fiscal year, provided that at the date of distribution, the ownership interest is held by the BEFIT group member for more than one year and this interest carries right to more than 10% of the profits, capital, reserves or voting rights.
Amendment 199 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
With the exception of financial assets held for trading, as referred to in Article 11(1), and investments made for the benefit of life insurance policyholders bearing the investment risk in the context of a unit- linked/index-linked life insurance policy, as referred to in Article 14, the financial accounting net income or loss of a BEFIT group member shall be adjusted to exclude 95100% of the amount of gain or loss arising from the disposition of an ownership interest, provided that at the date of disposition, the ownership interest is held by the BEFIT group member for more than one year and this interest carries a right to more than 10% of the profits, capital, reserves or voting rights.
Amendment 204 #
Proposal for a directive
Article 12 – paragraph 1 – a (new)
Article 12 – paragraph 1 – a (new)
A qualifying loss of a permanent establishment shall be treated as an expense of the main entity for the computation of its qualifying income or loss to the extent that the loss of the permanent establishment is treated as an expense in the computation of domestic taxable income of such main entity and is not set off against an item of the domestic taxable income that is subject to tax under the laws of both the jurisdiction of the main entity and the jurisdiction of the permanent establishment.
Amendment 210 #
Proposal for a directive
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2a. For the purposes of this Article, 'exceeding borrowing costs' shall maintain the same treatment as per Directive (EU) 20XX/XX/EU on laying down rules on a debt-equity bias reduction allowance and on limiting the deductibility of interest for corporate income tax purposes.
Amendment 215 #
Proposal for a directive
Article 20 – paragraph 1 – introductory part
Article 20 – paragraph 1 – introductory part
The financial accounting net income or loss of a BEFIT group member shall be adjusted to exclude the followingin accordance with Article 16(e) of Directive (EU) 2022/2523 of 14 December 2022:
Amendment 216 #
Proposal for a directive
Article 20 – paragraph 1 – point a
Article 20 – paragraph 1 – point a
Amendment 217 #
Proposal for a directive
Article 20 – paragraph 1 – point b
Article 20 – paragraph 1 – point b
Amendment 224 #
Proposal for a directive
Article 22 – paragraph 2 – point a
Article 22 – paragraph 2 – point a
(a) all buildings as well as any other type of immovable property and structure in use for the business, including industrial buildings and structures: 280 years;
Amendment 229 #
Proposal for a directive
Article 22 – paragraph 2 – point b
Article 22 – paragraph 2 – point b
(b) all other fixed tangible assets: their useful life as assessed in accordance with the acceptable accounting standard in the Union referred to in Article 7 to its entirety, without providing any additional time limitations;
Amendment 232 #
Proposal for a directive
Article 22 – paragraph 2 – point c
Article 22 – paragraph 2 – point c
(c) fixed intangible assets, including acquired goodwill: the period for which the asset enjoys legal protection or for which the right has been granted and, where that period cannot be determined, 53 years.
Amendment 234 #
Proposal for a directive
Article 22 – paragraph 4
Article 22 – paragraph 4
Amendment 239 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Acquisition costs, construction costs or improvement costs, together with the date of entry into use after acquisition, construction or improvement, shall be recorded in a fixed asset register for each fixed asset separccordance to the legislation of each Member Stately.
Amendment 240 #
Proposal for a directive
Article 25 – paragraph 2
Article 25 – paragraph 2
Amendment 241 #
Proposal for a directive
Article 25 – paragraph 3
Article 25 – paragraph 3
Amendment 242 #
Proposal for a directive
Article 25 – paragraph 3 – point a
Article 25 – paragraph 3 – point a
Amendment 243 #
Proposal for a directive
Article 25 – paragraph 3 – point b
Article 25 – paragraph 3 – point b
Amendment 244 #
Proposal for a directive
Article 25 – paragraph 3 – point c
Article 25 – paragraph 3 – point c
Amendment 245 #
Proposal for a directive
Article 25 – paragraph 3 – point d
Article 25 – paragraph 3 – point d
Amendment 246 #
Proposal for a directive
Article 25 – paragraph 3 – point e
Article 25 – paragraph 3 – point e
Amendment 247 #
Proposal for a directive
Article 25 – paragraph 3 – point f
Article 25 – paragraph 3 – point f
Amendment 248 #
Proposal for a directive
Article 25 – paragraph 3 – point g
Article 25 – paragraph 3 – point g
Amendment 249 #
Proposal for a directive
Article 25 – paragraph 3 – point h
Article 25 – paragraph 3 – point h
Amendment 250 #
Proposal for a directive
Article 25 – paragraph 3 – point i
Article 25 – paragraph 3 – point i
Amendment 255 #
Proposal for a directive
Article 38 – paragraph 1
Article 38 – paragraph 1
Where a company or a permanent establishment enters a BEFIT group, any unrelieved losses incurred before the entry date, in accordance with the corporate tax law of the Member State of its tax residence or location respectively, shall be deducted from its share of the BEFIT tax base as determined in accordance with Chapter III, to the extent that they are deductible under the corporate tax law of the Member State in which the BEFIT group member is resident for tax purposes or situated in the form of a permanent establishment.
Amendment 275 #
Proposal for a directive
Article 45 – paragraph 1 – subparagraph 1
Article 45 – paragraph 1 – subparagraph 1
For each fiscal year between 1 July 202830 and 30 June 2035 at the latest (the ‘transition period’), the BEFIT tax base shall be allocated to the BEFIT group members in accordance with the baseline allocation percentage.
Amendment 289 #
Proposal for a directive
Article 45 – paragraph 2 – subparagraph 2 – point b
Article 45 – paragraph 2 – subparagraph 2 – point b
(b) the total taxable result of the BEFIT group shall be the addition of the average of the taxable results, as referred to in point (a) of all BEFIT group members in the three previous fiscal years, excluding the taxable results of BEFIT group members whose average taxable result for the three previous fiscal years is negative.
Amendment 314 #
Proposal for a directive
Article 45 – paragraph 8
Article 45 – paragraph 8
8. If a group becomes subject to the rules of this Directive later than 1 July 202830, the baseline allocation shall be computed in accordance with paragraph 2. By way of derogation from paragraphs 1 and 2, the BEFIT tax base shall be allocated to the BEFIT group members over the remaining part of the transition period referred to in paragraph 1.
Amendment 317 #
Proposal for a directive
Article 45 – paragraph 9
Article 45 – paragraph 9
9. TA year before the last year of the transitional period the Commission shall carry out a comprehensive review of the transition rule as part of which it shall prepare a study on the interaction with Directive (EU) 2022/2523 of 14 December 2022 and on a study on the possible composition and weight of selected 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 1. 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.
Amendment 347 #
Proposal for a directive
Article 57 – paragraph 2
Article 57 – paragraph 2
2. The BEFIT information return shall be submitted to the filing authority no later than fourten months after the end of the fiscal year.
Amendment 377 #
Proposal for a directive
Article 77 – paragraph 2
Article 77 – paragraph 2
2. Member States shall communicate to the Commission and the European Parliament relevant information for the evaluation of the Directive in accordance with paragraph 3, including aggregated data on BEFIT group members which are resident for tax purposes in their jurisdiction and permanent establishments thereof operating in their jurisdiction, in order to properly assess the impact of the transition allocation rule and of Directive (EU) 2022/2523 and present an assessment of the additional costs that were incurred by companies falling under both Directives as well as assessing the situation regarding Pillar One of the Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy agreed by the OECD/G20 Inclusive Framework on BEPS on 8 October 2021.
Amendment 380 #
Proposal for a directive
Article 77 – paragraph 2 a (new)
Article 77 – paragraph 2 a (new)
2a. The Commission shall include in its report an evaluation of the scope as laid down in Article 2 paragraph 1 point (a) of this Directive in view of international tax agreements and the transformation into EU Directives;
Amendment 381 #
Proposal for a directive
Article 77 – paragraph 2 b (new)
Article 77 – paragraph 2 b (new)
2b. The Commission in its review and report shall particularly take into account bilateral pre-accession tax treaties and assess their interaction with this Directive as well as specifically with the derogation introduced in Article 2 paragraph 2 of this Directive. In regards to this, the report shall, where appropriate, be accompanied by a proposal to amend this Directive.
Amendment 383 #
Proposal for a directive
Article 78 – paragraph 1
Article 78 – paragraph 1
1. Member States shall adopt and publish the laws, regulations and administrative provisions necessary to comply with this Directive by 1 January 202830. They shall forthwith communicate to the Commission the text of those provisions.
Amendment 384 #
Proposal for a directive
Article 78 – paragraph 2
Article 78 – paragraph 2
2. They shall apply those provisions from 1 July 202830.