Awaiting committee decision
2016/0336(CNS) Common consolidated corporate tax base (CCCTB)
Next event: Vote scheduled in committee, 1st reading/single reading 2018/02/21 more...
Lead committee dossier: ECON/8/08272
Legal Basis TFEU 115
Next event: Vote scheduled in committee, 1st reading/single reading 2018/02/21 more...
- Indicative plenary sitting date, 1st reading/single reading 2018/03/13
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON | LAMASSOURE Alain (EPP) | BAYET Hugues (S&D), LOONES Sander (ECR), WIERINCK Lieve (ALDE), CARTHY Matt (GUE/NGL), DE MASI Fabio (GUE/NGL), JOLY Eva (Verts/ALE), VALLI Marco (EFD), KAPPEL Barbara (ENF) |
| Opinion | IMCO | ||
| Opinion | JURI | REGNER Evelyn (S&D) |
Legal Basis TFEU 115
Subjects
Activites
-
2018/03/13
Indicative plenary sitting date, 1st reading/single reading
-
2018/02/21
Vote scheduled in committee, 1st reading/single reading
- #3506
- 2016/12/06 Council Meeting
-
2016/11/24
Committee referral announced in Parliament, 1st reading/single reading
-
2016/10/25
Legislative proposal published
-
COM(2016)0683
summary
PURPOSE: to present a proposal for a re-launched Common Consolidated Corporate Tax Base (CCCTB) to ensure a corporate tax system that encourages growth and fairness in the internal market. PROPOSED ACT: Council Directive. ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting Parliament but without being obliged to follow the latter’s opinion. BACKGROUND: currently, businesses with cross-border activity have to comply with up to 28 divergent corporate tax systems. Generally, corporate income is taxed at national level, but the economic environment has become more globalised, mobile and digital. Business models and corporate structures are more complex, making it easier to shift profits. In March 2011, the Commission proposed a directive for a Common Consolidated Corporate Tax Base (CCCTB). The proposal, which is still pending in Council, aims to provide companies with a single set of corporate tax rules for doing business across the internal market, thereby facilitating their cross-border activity. The discussions in Council since 2011 have shown that the CCCTB proposal is unlikely to get adopted, in its entirety, without a staged approach. The Commission, in its action plan of June 2015, advocated a step-by-step approach to the CCCTB. Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, the Commission considers it necessary to divide the ambitious CCCTB initiative into two separate proposals. It proposes, at a first stage, rules on a common corporate tax base, before addressing, at a second stage, the issue of consolidation. This proposal for a Directive focuses on the so-called 'second step' of the staged approach (consolidation), i.e. after the elements of the common base have politically been agreed. Until this is achieved, the 2011 proposal for a CCCTB will remain pending for examination in Council. The Commission will submit the two proposals, i.e. for a common corporate tax base and a CCCTB, simultaneously and as part of a single initiative. The proposal of 2011 will be withdrawn at the same time as the Commission adopts the new proposals. This initiative on re-launching the CCCTB features prominently in the Commission’s larger project in the field of fairer taxation. It will be presented at the same time as the proposal for a directive on hybrid mismatches involving third countries (which will amend the Directive tax avoidance) and a directive on dispute settlement. IMPACT ASSESSMENT: the main policy option that has been considered is a proposal for a common consolidated corporate tax base. A key choice to be made relates to the scope of such a tax base, i.e. to whom it would apply. Assessing the different options has led to a preferred option: a CCCTB mandatory for large companies, equipped with an 'Allowance for Growth and Investment' and with an allowance for research and development expenses. The anticipated economic benefits of the proposal are positive, leading to an increase in investment and employment of up to 3.4% and 0.6%, respectively. Overall, growth would increase by up to 1.2%. CONTENT: the proposal is the 'second step' in a staged approach towards an EU-wide corporate tax system with cross-border consolidation of the tax results amongst members of the same group. Scope: in contrast to the proposal of 2011, which laid down an optional system for all, this proposal will be mandatory for groups of companies beyond a certain size (whose consolidated turnover is above EUR 750 million). The threshold is in line with the approach taken in other EU initiatives to counter tax avoidance. At the same time, the common rules will be available, as an option, to a wide scope of groups that fall short of the size threshold. This allows SMEs and micro-enterprises the opportunity to benefit from the advantages of a CCCTB without making it compulsory for this set of companies. Definition of group: (unchanged compared to the proposal of 2011): eligibility for the consolidated tax group will be determined in accordance with a two-part test based on (i) control (more than 50% of voting rights) and (ii) ownership (more than 75 % of equity) or rights to profits (more than 75 % of rights giving entitlement to profit). These thresholds must be met throughout the tax year; otherwise, the failing company will have to leave the group immediately. Business reorganisations and taxation of losses and unrealised capital gains: the proposed framework chiefly involves the treatment of losses and unrealised capital gains on entering and leaving the group. There are rules to deal with unrealised capital gains which have accrued to fixed assets where the assets are disposed of within a short period after their entry into, or exit from, a group. A Member State (in the case of an entry into a group) or the group (in the case of an exit from a group) are given the right to tax underlying capital gains to the extent those were created in their tax jurisdiction. Moreover, the tax treatment of capital gains engrained in self-generated intangible assets calls for a customised approach, which will involve assessing them on the basis of a suitable proxy, that is to say, research and development, and marketing and advertising costs over a specified period. Withholding taxes (unchanged compared to the proposal of 2011): the proceeds of withholding taxes charged on interest and royalty payments made by taxpayers will be shared according to the formula of that tax year. Withholding taxes charged on dividends will not be shared. Preventing circumvention of tax exemptions (unchanged compared to the proposal of 2011): the tax exemption in favour of disposals of shares will be disallowed if this is illegitimately extended to sales of assets other than shares. Formula for apportionment: one of the principal elements of the proposal is the formulary apportionment, comprised of three equally weighted factors (i.e. labour, assets and sales by destination). This combination reflects a balanced approach to distributing taxable profits amongst eligible Member States. Administrative procedures: in contrast to the proposal of 2011, the common administrative rules are limited to the consolidated group. Groups will deal with a single tax administration in the EU ('principal tax authority' or 'one-stop-shop'.) This will be based in the Member State where the parent company of the group ('principal taxpayer') is resident for tax purposes. Audits will be initiated and coordinated by the principal tax authority. DELEGATED ACTS: the proposal contains provisions empowering the Commission to adopt delegated acts in accordance with Article 290 of the Treaty of the Functioning of the European Union.
- DG {'url': 'http://ec.europa.eu/info/departments/taxation-and-customs-union_en', 'title': 'Taxation and Customs Union'}, MOSCOVICI Pierre
-
COM(2016)0683
summary
Documents
- Legislative proposal published: COM(2016)0683
- Debate in Council: 3506
| Amendments | Dossier |
| 301 |
2016/0336(CNS)
2017/05/15
JURI
30 amendments...
Amendment 16 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which impede the proper functioning of the internal market.
Amendment 17 #
Proposal for a directive Recital 1 (1)
Amendment 18 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which
Amendment 19 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more aggressive and sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which impede the proper functioning of the internal market. Action to rectify these problems should therefore address both these types of market deficiencies.
Amendment 20 #
Proposal for a directive Recital 2 (2) To support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated. A corporate tax system which treats the Union as a single market for the purpose of computing the corporate tax base of companies would increase transparency of activities of multinational enterprises and enable the public to assess their impact on the economy. It is therefore necessary to provide for mechanisms that
Amendment 21 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to
Amendment 22 #
Proposal for a directive Recital 4 a (new) (4a) In this way, the CCCTB is in line with Commission efforts to achieve fairer and more efficient taxation, being largely complementary to EU company law; it is also is broadly in line with projects such as the Capital Markets Union and various initiatives intended to ensure tax transparency, promote the exchange of information and combat money laundering.
Amendment 23 #
Proposal for a directive Recital 5 (5)
Amendment 24 #
Proposal for a directive Recital 5 (5) Many aggressive tax planning structures tend to feature in a cross-border context, which implies that the participating groups of companies possess a minimum of resources. On this premise, for reasons of proportionality, the rules on a common base should be mandatory only for companies which belong to a group of a substantial size, while exempting micro- enterprises and SMEs. For that purpose, a size-
Amendment 25 #
Proposal for a directive Recital 5 a (new) (5a) In a context where the emergence of the digital economy is tending to call into question the relevance of traditional tax rules, it is desirable to take into account, for purposes of consolidating the base of a taxpayer, its turnover installed in a fixed manner in the Member State or Member States within which the taxpayer has no physical structure, extending the concept of ‘permanent establishment’ to include virtual establishments.
Amendment 26 #
Proposal for a directive Recital 5 a (new) (5a) Given the digital change in the business environment, it is necessary to define and implement the concept of a ‘digital business establishment’. Companies that generate profits in a Member State without having a physical establishment there should be treated in the same way as companies that do have a physical establishment in that Member State. Therefore, the CCCTB should also apply to digital corporations.
Amendment 27 #
Proposal for a directive Recital 8 (8) The revenue from withholding taxes on interest and royalty payments should be shared in accordance with the formula for the apportionment of the consolidated tax base of the tax year in which the withholding tax is due, in order to compensate for the fact that interest and royalty payments would have previously led to a deduction and the benefit would have been shared by the group. The revenue from withholding taxes on dividends, however, should not be shared. Contrary to interest and royalty payments, dividends are distributed from profits which have already been subjected to corporate taxation and therefore, a dividend distribution does not involve, for group members, any benefit consisting in a deduction of business expenses. Any payments due should be paid to the Member State and not the EU;
Amendment 28 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned. Labour and assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules of this Directive could be circumvented. Where, due to exceptional circumstances, the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause should provide for an alternative method of income allocation. On the other hand, these equally weighted factors are more resilient to aggressive tax planning practices than the widespread transfer pricing methods for allocating profit. In this way, loopholes between national tax systems, in particular transfer pricing, which accounts for around 70% of all profit shifting in the EU, could be eliminated and a major step taken towards a fair, efficient and transparent tax system.
Amendment 29 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned, including in the case of activities in the digital economy sector which do not necessarily require a fixed place in a Member State in order to carry on an activity there. Labour and assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules of this Directive could be circumvented. Where, due to exceptional circumstances, the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause should provide for an alternative method of income allocation.
Amendment 30 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and not the EU and should ensure that profits are taxed where they are actually earned. Labour and assets should therefore be allocated to the Member State and not the EU where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services.
Amendment 31 #
Proposal for a directive Recital 18 (18) Since the objectives of this Directive, namely to improve the functioning of the internal market through countering practices of international tax avoidance and to facilitate businesses in expanding across borders within the Union, cannot be sufficiently achieved by the Member States acting individually and in a disparate fashion because coordinated action is necessary to obtain these objectives, but can rather, by reason of the fact that the Directive targets inefficiencies of the internal market that originate in the interaction between disparate national tax rules which impact on the internal market and discourage cross-border activity, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives, especially considering that its mandatory scope is limited to groups beyond a certain size. In fact, the envisaged measures do not go further than harmonising the corporate tax base, which is a prerequisite for curbing identified obstacles that distort the internal market. Furthermore, this stage- by-stage approach entitles Member States to determine their desired amount of tax revenues in order to meet their budgetary policy targets. At the same time, it does not affect Member States' right to set their own profits tax rate.
Amendment 32 #
Proposal for a directive Article 1 – paragraph 2 2. A company that applies the rules of this Directive
Amendment 33 #
Proposal for a directive Article 2 – paragraph 1 – introductory part 1. The rules of this Directive shall apply to a company that is established under the laws of a Member State, including its permanent and digital business establishments in other Member States, where the company meets all of the following conditions:
Amendment 34 #
Proposal for a directive Article 2 – paragraph 1 – point c (c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR 750 000 000 (or equivalent in domestic currency) during the financial year preceding the relevant financial year;
Amendment 35 #
Proposal for a directive Article 2 – paragraph 1 – point c (c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR
Amendment 36 #
Proposal for a directive Article 2 – paragraph 1 – point c (c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR
Amendment 37 #
Proposal for a directive Article 2 – paragraph 2 – subparagraph 1 This Directive shall also apply to a company that is established under the laws of a third country in respect of its permanent establishments situated in one or more Member States, and in relation to turnover installed in a fixed manner in one or more Member States, where the company meets the conditions laid down in points (b) to (d) of paragraph 1.
Amendment 38 #
Proposal for a directive Article 2 – paragraph 2 – subparagraph 1 This Directive shall also apply to a company that is established under the laws of a third country in respect of its permanent establishments situated in one or more Member States, and in relation to revenues otherwise accrued in a Member State, where the company meets the conditions laid down in points (b) to (d) of paragraph 1.
Amendment 39 #
Proposal for a directive Article 2 – paragraph 2 a (new) 2a. This Directive shall also apply to businesses established under the laws of a third country in respect of their digital business establishments that are specifically directed towards consumers or businesses in a Member State or that principally receive their revenue from activity in a Member State, where the business meets the conditions laid down in points (b) to (d) of paragraph 1. For the purpose of ascertaining whether a digital establishment is specifically directed towards consumers or businesses in a Member State, the physical locations of the consumers or users and suppliers of the goods and services provided shall be taken into account, in accordance with the OECD’s BEPS Action 1. If these cannot be ascertained, regard shall be had to whether the establishment is conducting its business under the top level domain of the Member State or of the Union or, in relation to mobile- application-based businesses, is distributing its application via the Member State-specific part of a mobile application distribution centre or whether the business is conducted under a domain which – for example as a result of the use of names of Member States, regions or towns – makes it clear that the establishment is directed towards consumers or businesses in a Member State, or the business activity is subject to General Terms and Conditions applicable specifically for the European Union or a Member State, or the web presence of the business provides advertising space specifically aimed at consumers and businesses in a Member State.
Amendment 40 #
Proposal for a directive Article 3 – paragraph 1 – point 28 a (new) (28a) ‘digital establishment’ means - as defined by the OECD’s BEPS Action 1 - an establishment which is specifically directed towards consumers or businesses in a Member State, with due regard for the physical locations of the consumers or users and of suppliers of the goods and services provided. If these cannot be ascertained, regard shall be had to whether the establishment is conducting its business under the top level domain of the Member State or of the Union or, in relation to mobile-application-based businesses, is distributing its application via the Member State-specific part of a mobile application distribution centre or whether the business is conducted under a domain which – for example as a result of the use of names of Member States, regions or towns – makes it clear that the establishment is directed towards consumers or businesses in a Member State, or the business activity is subject to General Terms and Conditions applicable specifically for the European Union or a Member State, or the web presence of the business offers advertising space specifically aimed at consumers and businesses in a Member State.
Amendment 41 #
Proposal for a directive Article 3 – paragraph 1 – point 28 a (new) (28a) ‘Digital business establishment’ means an establishment specifically directed towards consumers and businesses in a Member State and, to that end, account shall be taken of whether the activity is being carried out in the top- level domain of the Member State or of the Union and whether mobile applications are being distributed through part of a distribution centre specifically intended for that purpose in the Member State concerned.
Amendment 42 #
Proposal for a directive Article 6 – paragraph 1 – point d a (new) (da) a digital business establishment.
Amendment 43 #
Proposal for a directive Article 39 – paragraph 1 The Commission may adopt acts laying down detailed rules on the calculation of the labour, asset and sales factors,
Amendment 44 #
Proposal for a directive Article 79 – paragraph 1 The Commission shall, five years after the entry into force of this Directive, review its application and report to the Council and the European Parliament on the operation of this Directive. The report shall in particular include an analysis of the impact of the mechanism set up in Chapter VIII of this Directive on the apportionment of the tax bases between the Member States.
Amendment 45 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 1 Member States
source: 604.719
2017/09/29
ECON
271 amendments...
Amendment 100 #
Proposal for a directive Recital 7 (7) Rules on business reorganisations should ensure that the effect of such reorganisations on the existing taxing rights of Member States is kept to a minimum. Each time that a company joins a group, the Member States where other group members are resident for tax purposes or situated should therefore not bear the extra cost of losses that the company incurred under the rules of another corporate tax system which applied to that company prior to the rules of this Directive.
Amendment 101 #
Proposal for a directive Recital 9 Amendment 102 #
Proposal for a directive Recital 10 Amendment 103 #
Proposal for a directive Recital 10 (10)
Amendment 104 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise t
Amendment 105 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned. Labour and assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules
Amendment 106 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned, accurately reflecting the contribution made by each entity in the group to the creation of transnational value. Labour and assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules of this Directive could be circumvented. Where, due to exceptional circumstances,
Amendment 107 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise three
Amendment 108 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise
Amendment 109 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise three equally weighted factors, namely labour, assets and sales by destination. Those equally weighted factors should reflect a balanced approach to distributing taxable profits amongst the relevant Member States and should ensure that profits are taxed where they are actually earned. Labour and assets should therefore be allocated to the Member State where the labour is performed or the assets are located, and would thereby give appropriate weight to the interests of the Member State of origin, whilst sales should be allocated to the Member State of destination of the goods or services, including digital services. To account for differences in the levels of wages across the Union and thus allow for a fair distribution of the consolidated tax base, the labour factor should comprise both payroll and the number of employees (i.e. each item counting for half). The asset factor, on the other hand, should comprise all fixed tangible assets, but not intangible and financial assets because of their mobile nature and the resulting risk that the rules of this Directive could be circumvented. Where, due to exceptional circumstances, the outcome of the apportionment does not fairly represent the extent of business activity, a safeguard clause should provide
Amendment 110 #
Proposal for a directive Recital 10 (10) The formula apportionment for the consolidated tax base should comprise t
Amendment 111 #
Proposal for a directive Recital 10 a (new) (10a) The apportionment formula needs to fully reflect the economic activity that has taken place in each Member State, by duly taking into full account of potential significant differences between their economies. Where the formula results in an imbalanced apportionment that fails to reflect the economic activity, a safeguard clause will remedy such a situation.
Amendment 112 #
Proposal for a directive Recital 10 b (new) (10b) The apportionment formula needs to reflect a modern, 21st century economy. The Commission shall establish a definition of digital activity, and will consider a formula that takes full account of this, in order to better reflect economic activity in each Member State.
Amendment 113 #
Proposal for a directive Recital 11 Amendment 114 #
Proposal for a directive Recital 11 a (new) (11a) To end the race to the bottom on corporate tax rates at EU level, a European minimum effective corporate tax rate is required. On average, corporate tax in the European Union decreased from 35% in the 1990s to 22.5% today. By adopting the CCCTB, Member States will no longer be able to compete through tax bases, the result being further decreases in the corporate tax rates.
Amendment 115 #
Proposal for a directive Recital 12 (12) To optimise the benefits of having a single set of corporate tax rules across the EU for determining the consolidated tax base of groups, groups should be able to deal with a single tax administration ('principal tax authority'). As a matter of principle, that principal tax authority should be based in the Member State where the parent company of the group is resident for tax purposes or where the group's highest tier of management within the EU is located ('principal taxpayer'). It is essential in this context to lay down common procedural rules for the administration of the system.
Amendment 116 #
Proposal for a directive Recital 13 (13) Audits should in principle be
Amendment 117 #
Proposal for a directive Recital 13 a (new) (13a) The Commission should create a new department in DG TAXUD to monitor Member States’ tax revenues after the implementation of the CCCTB. In this view, the Commission should increase the means of this DG. This new department should be mandated to give guidance to companies and Member States’ tax administrations.
Amendment 118 #
Proposal for a directive Recital 13 a (new) (13a) Encourages the Commission to assess the establishment of a Dispute Settlement Mechanism to ensure a proper dispute settlement when different Member states are involved.
Amendment 119 #
Proposal for a directive Recital 13 b (new) (13b) As the High Level Group on Own Resources suggests, a part of the fiscal revenues gained from the common consolidated tax base can be used as an own resource for the Union budget, in order to proportionally reduce Member States’ contributions to the same budget. This should lead to a more effective way to levy taxes on exporting and multinational corporations, who benefit most from globalisation and the Single Market, and thus introduce a user-pays principle.
Amendment 120 #
Proposal for a directive Recital 14 (14) This Directive builds upon Council Directive 2016/xx/EU on a common corporate tax base (which lays down a common set of corporate tax rules for computing the tax base) and focusses on the consolidation of tax results across the group. It
Amendment 121 #
Proposal for a directive Recital 14 a (new) (14a) In order to create a level playing field and to eliminate tax competition conditions having a negative impact on the economic performance of the internal market and leading to a race to the bottom, minimum effective corporate tax rates should be introduced so as to optimise tax efficiency. Such a minimum effective tax rate would furthermore lead to the benefit of better comparing economic performance of Member States across the EU. The average EU top statutory corporate income tax rate is 22.5%, and in some Member States as low as 10%. The declining tendency of this rate should be reversed so as to avoid a race to the bottom. This directive therefore asks the Commission to come up with a legislative proposal for a minimum effective corporate tax rate at 18% in each Member State. Until such a legislation is in place, the Commission should publish statistics of the effective tax rates in Member States, distinguishing between the effective tax rates of SMEs and MNEs.
Amendment 122 #
Proposal for a directive Recital 14 a (new) (14a) This Directive shall be regarded in conjunction with Council Directive 2016/xx/EU on a common corporate tax base upon which it builds. In order to obtain the full objectives of both Directives and the resulting positive effects to the functioning of the internal market. Therefore, it is important that both are implemented at the same time. This goal can be obtained by refraining from the inclusion of provisions that form a barrier to the compatibility of both Directives.
Amendment 123 #
Proposal for a directive Recital 14 a (new) (14a) In order to reach its objectives, this Directive should ensure a real consolidation process of tax bases rather than a simple aggregation process which could eventually lead to new loopholes and mismatches between the different national accounting rules. The consolidated tax base should therefore be regarded as the result of the consolidated net taxable revenue of the group members as calculated on an accounting basis applicable to all group members.
Amendment 124 #
Proposal for a directive Recital 16 Amendment 125 #
Proposal for a directive Recital 16 (16) In order to supplement or amend certain non-essential elements of this Directive, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission with respect of (i) taking into account changes to the laws of Member States concerning the company forms and corporate taxes and amend Annexes I and II accordingly; (ii) laying down additional definitions; and
Amendment 126 #
Proposal for a directive Recital 17 Amendment 127 #
Proposal for a directive Recital 17 Amendment 128 #
Proposal for a directive Recital 17 (17) In order to ensure uniform conditions for the implementation of this Directive, implementing powers should be conferred on the Commission (i) to adopt annually a list of third country company forms that are similar to the company forms listed in Annex I; (ii) to lay down detailed rules on the calculation of the labour
Amendment 129 #
Proposal for a directive Recital 17 a (new) (17a) In order to reduce red tape, the implementation of harmonised accounting rules and administrative practices in tax matters is a prerequisite to guarantee a fully functioning common consolidated corporate taxbase system as mentioned in the European Parliament resolution of 25 November 2015 on tax rulings and other measures similar in nature or effect(2015/2066(INI)).
Amendment 130 #
Proposal for a directive Recital 18 Amendment 131 #
Proposal for a directive Recital 18 (18) Since the objectives of this Directive, namely to improve the functioning of the internal market through countering practices of international tax avoidance and to facilitate businesses in expanding across borders within the Union, cannot be sufficiently achieved by the Member States acting individually and in a disparate fashion because coordinated action is necessary to obtain these objectives, but can rather, by reason of the fact that the Directive targets inefficiencies of the internal market that originate in the interaction between disparate national tax rules which impact on the internal market and discourage cross-border activity, be better achieved at Union level, the Union
Amendment 132 #
Proposal for a directive Recital 19 a (new) (19a) It should be acknowledged that seven Member State national parliaments have issued reasoned opinions to state that this legislative act does not comply with the principle of subsidiarity as defined in Article 5(3) TEU.
Amendment 133 #
Proposal for a directive Recital 20 (20) The Commission should be required to review the application of the Directive five years after its entry into force and report to Council and European Parliament on its operation. Member States should be required to communicate to the
Amendment 134 #
Proposal for a directive Recital 20 a (new) (20a) In order to achieve a full and consistent consolidation and prevent new opportunities for arbitrage arising from accounting inconsistencies between Member States, it is necessary to adopt clear, consistent and objective criteria for calculating the consolidated tax base; to this effect, the Commission should propose the necessary adjustments to the relevant provisions of this Directive concerning the definition and calculation of the consolidated tax base.
Amendment 135 #
Proposal for a directive Recital 20 a (new) (20a) The Commission shall consider additional studies that analyse the potential impact of the CCCTB on the corporate tax revenues of individual Member States, and potential competitive disadvantages for the EU in relation to third countries.
Amendment 136 #
Proposal for a directive Article 1 – paragraph 1 1. This Directive establishes an optional system for the consolidation of the tax bases, as referred to in Council Directive 2016/xx/EU,14 of companies that are members of a group and lays down rules on how a common consolidated corporate tax base shall be allocated to Member States and administered by the national tax authorities. __________________ 14 [full title of the Directive (OJ L [ ], [ ], p. [ ])].
Amendment 137 #
Proposal for a directive Article 1 – paragraph 2 Amendment 138 #
Proposal for a directive Article 1 – paragraph 2 Amendment 139 #
Proposal for a directive Article 1 – paragraph 2 2. A company that applies the rules of this Directive shall cease to be subject to the national corporate tax law
Amendment 140 #
Proposal for a directive Article 2 – paragraph 1 – introductory part 1. The rules of this Directive shall apply to a company that is established under the laws of a Member State, including its permanent and virtual permanent establishments in other Member States, where the company meets all of the following conditions:
Amendment 141 #
Proposal for a directive Article 2 – paragraph 1 – introductory part 1. The rules of this Directive shall apply to a company that is established under the laws of a Member State, including its permanent establishments and digital business in other Member States, where the company meets all of the following conditions:
Amendment 142 #
Proposal for a directive Article 2 – paragraph 1 – introductory part 1. The rules of this Directive
Amendment 143 #
Proposal for a directive Article 2 – paragraph 1 – point c Amendment 144 #
Proposal for a directive Article 2 – paragraph 1 – point c (c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue
Amendment 145 #
Proposal for a directive Article 2 – paragraph 1 – point c (c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR
Amendment 146 #
Proposal for a directive Article 2 – paragraph 1 – point c (c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR
Amendment 147 #
Proposal for a directive Article 2 – paragraph 1 – point c (c) it belongs to a consolidated group for financial accounting purposes with a total consolidated group revenue that exceeded EUR
Amendment 148 #
Proposal for a directive Article 2 – paragraph 2 – subparagraph 1 This Directive shall also apply to a company that is established under the laws of a third country in respect of its permanent or digital business establishments situated in one or more Member States, and in respect of the revenues generated from operations and business activity carried out in one or more Member States, where the company meets the conditions laid down in points (b) to (d) of paragraph 1.
Amendment 149 #
Proposal for a directive Article 2 – paragraph 2 – subparagraph 1 This Directive shall also apply to a company that is established under the laws of a third country in respect of its permanent establishments situated in one or more Member States, and in relation to revenues otherwise accrued in a Member State, where the company meets the conditions laid down in points (b) to (d) of paragraph 1.
Amendment 150 #
Proposal for a directive Article 2 – paragraph 2 – subparagraph 1 This Directive
Amendment 151 #
Proposal for a directive Article 2 – paragraph 2 a (new) 2a. This Directive shall also apply to a company that is established under the laws of a third country in respect of its virtual permanent establishments that are specifically directed towards consumers or businesses in a Member State or that principally receive their revenue from activity in a Member State, where the company meets the conditions laid down in points (b) to (d) of paragraph 1.
Amendment 152 #
Proposal for a directive Article 2 – paragraph 3 Amendment 153 #
Proposal for a directive Article 2 – paragraph 4 Amendment 154 #
Proposal for a directive Article 3 – paragraph 1 – point 11 – point d a (new) (da) an entity where the group's highest tier of management related to the operations and business activity within the EU is located;
Amendment 155 #
Proposal for a directive Article 3 – paragraph 1 – point 23 (23) 'consolidated tax base' means the
Amendment 156 #
Proposal for a directive Article 3 – paragraph 1 – point 23 (23) 'consolidated tax base' means the
Amendment 157 #
Proposal for a directive Article 3 – paragraph 1 – point 23 (23) 'consolidated tax base' means the result of
Amendment 158 #
Proposal for a directive Article 3 – paragraph 1 – point 26 (26) 'competent authority' means the
Amendment 159 #
Proposal for a directive Article 3 – paragraph 1 – point 28 a (new) (28a) 'royalty cost' means costs arising from payments of any kind made as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films and software, any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience, or any other intangible asset; payments for the use of, or the right to use, industrial, commercial or scientific equipment shall be regarded as royalty costs;
Amendment 160 #
Proposal for a directive Article 3 – paragraph 1 – point 28 a (new) (28a) ‘permanent and virtual permanent establishment’ as defined in point (X) of Article 4 of Directive 2016/xx/EU;
Amendment 161 #
Proposal for a directive Article 3 – paragraph 1 – point 28 b (new) (28b) 'transfer prices' means the prices at which an undertaking transfers tangible goods or intangible assets or provides services to associated undertakings;
Amendment 162 #
Proposal for a directive Article 3 – paragraph 1 – point 28 c (new) (28c) 'patent box' means a system used to calculate the income deriving from intellectual property (IP) which is eligible for tax benefits by establishing a link between the eligible expenditure effected when the IP assets were created (expressed as a proportion of the overall expenditure linked to the creation of the IP assets) and the income deriving from those IP assets; this system restricts the IP assets to patents or intangible goods with an equivalent function and provides the basis for the definition of 'eligible expenditure', 'overall expenditure' and 'income deriving from IP assets';
Amendment 163 #
Proposal for a directive Article 3 – paragraph 1 – point 28 d (new) (28d) ‘Digital business establishment’ means an establishment which is specifically directed towards consumers or businesses in a Member State regard shall be had to the fact that the business establishment is conducting its business under the top level domain of the Member State or of the EU, or in relation to mobile application based business, distributing its application via the Member State specific part of a mobile application distribution centre;
Amendment 164 #
Proposal for a directive Article 3 – paragraph 1 – point 28 e (new) (28e) An effective corporate tax rate means corporate tax paid in relation to earnings and profits in financial statements of the corporation.
Amendment 165 #
Proposal for a directive Article 4 – paragraph 1 1. A company that has its registered office, place of incorporation or place of effective management in a Member State
Amendment 166 #
Proposal for a directive Article 4 – paragraph 1 1. A company that has its registered office, place of incorporation, virtual presence as laid down in Article 5 of Directive 2016/xx/EU or place of effective management in a Member State and is not, under the terms of an agreement concluded by that Member State with a third country, regarded as tax resident in that third country shall be considered resident in that Member State for tax purposes.
Amendment 167 #
Proposal for a directive Article 4 – paragraph 2 a (new) 2a. A company with digital presence collecting or exploiting personal data from online platform and service users for commercial purposes shall be considered to be resident in the Member State of residence of the users whose personal data it collects and exploits. The distribution between Member States of taxing rights on digital assets shall take account of the contribution of users to the increase in the added value of the intangible asset. In particular, consideration shall be given to the number of users and the intensity of use in each country. The digital presence shall be determined in accordance with the conditions and criteria listed in Article 5 of Directive … [the directive adopted on the basis of Commission proposal COM(2016)0685]. The Commission shall be empowered to adopt delegated acts in accordance with Article 75 to lay down technical standards for the following factors: (a) the number of registered individual users per month that are domiciled in the non-resident jurisdiction who logged in or visited the taxpayer's digital platform; (b) the number of digital contracts concluded with customers or users that are domiciled in the non- resident jurisdiction in a taxable year; (c) the volume of DATA collected by a company in a taxable year in each Member State.
Amendment 168 #
Proposal for a directive Article 4 – paragraph 5 5. A non-resident taxpayer shall be subject to corporate tax on all income from an activity carried on through a permanent establishment in a Member State or through an entity located in a Member State that can be considered the place of effective management of the group's business within the EU, meaning the place where key management and commercial decisions related to the operations inside the EU are implemented.
Amendment 169 #
Proposal for a directive Article 4 – paragraph 5 5. A non-resident taxpayer shall be subject to corporate tax on all income from an activity carried on through a permanent or virtual permanent establishment in a Member State.
Amendment 170 #
Proposal for a directive Article 4 – paragraph 5 5. A non-resident taxpayer shall be subject to corporate tax on all income
Amendment 171 #
Proposal for a directive Article 5 – paragraph 1 – point a (a) it has a right to exercise more than 25
Amendment 172 #
Proposal for a directive Article 5 – paragraph 1 – point a (a) it has a right to exercise more than 50 % of the voting rights;
Amendment 173 #
Proposal for a directive Article 5 – paragraph 1 – point b (b) it has an ownership right amounting to more than
Amendment 174 #
Proposal for a directive Article 5 – paragraph 1 – point b (b) it has an ownership right amounting to more than 75
Amendment 175 #
Proposal for a directive Article 5 – paragraph 2 – point b (b) entitlement to profit and ownership of capital shall be calculated by multiplying the interests held, directly and indirectly, in subsidiaries at each tier. Ownership rights amounting to
Amendment 176 #
Proposal for a directive Article 5 – paragraph 2 – point b (b) entitlement to profit and ownership of capital shall be calculated by multiplying the interests held, directly and indirectly, in subsidiaries at each tier. Ownership rights amounting to
Amendment 177 #
Proposal for a directive Article 5 – paragraph 2 a (new) 2a. The use of letterbox companies by taxpayers operating in the Union should be prohibited. Taxpayers should communicate to tax authorities evidence demonstrating the economic substance of each of the entities in their group, as part of their annual country-by-country reporting obligations.
Amendment 178 #
Proposal for a directive Article 6 – paragraph 1 – point a (a) all its permanent and virtual permanent establishments that are situated in a Member State;
Amendment 179 #
Proposal for a directive Article 6 – paragraph 1 – point b (b) all permanent and virtual permanent establishments that are situated in a Member State and belong to its qualifying subsidiaries that are resident in a third country for tax purposes;
Amendment 180 #
Proposal for a directive Article 6 – paragraph 1 – point c (c) all its qualifying subsidiaries that are resident in a Member State for tax purposes, including the permanent and virtual permanent establishments of those subsidiaries where such permanent establishments are situated in a Member State;
Amendment 181 #
Proposal for a directive Article 6 – paragraph 2 2. A non-resident taxpayer shall form a group in respect of all of its permanent and virtual permanent establishments that are situated in one or more Member States and with all of its qualifying subsidiaries that are resident in a Member State for tax purposes, including the permanent and virtual permanent establishments of those subsidiaries where such
Amendment 182 #
Proposal for a directive Article 7 – paragraph 1 Amendment 183 #
Proposal for a directive Article 7 – paragraph 1 1. The
Amendment 184 #
Proposal for a directive Article 7 – paragraph 1 1. The
Amendment 185 #
Proposal for a directive Article 7 – paragraph 1 a (new) 1a. The net taxable revenue of members of a group shall be based on their financial statements that shall be adjusted so that taxable revenues shall be all cash, exchange or barter receipts arising during or due for the period less those accounted for in previous periods, those of a capital nature and those explicitly exempted from charge; less those cash, barter or exchange payments made or due for the period that were incurred for the purposes of the trade of the corporation less those accounted for in previous periods, those that represent loan or equity capital repayment and those that are explicitly exempted from deduction; less those allowances and reliefs specifically permitted and those excesses of deductions over revenues brought forward from previous periods.
Amendment 186 #
Proposal for a directive Article 7 – paragraph 1 a (new) 1a. The net taxable revenue shall not include cash, barter or exchange payments made or due which were accounted for in previous periods for the purposes of the trade of the corporation, as well as loan or equity capital repayment and expenses that are explicitly exempted from deduction.
Amendment 187 #
Proposal for a directive Article 7 – paragraph 2 2. Where the consolidated tax base is negative, the loss shall be carried forward and be set off against the next positive consolidated tax base during a maximum of five years. Where the consolidated tax base is positive, it shall be apportioned in accordance with Chapter VIII.
Amendment 188 #
Proposal for a directive Article 7 – paragraph 2 2. Where the consolidated tax base is negative, the loss shall be carried forward, for a maximum of five years, and be set off against the next positive consolidated tax base. Where the consolidated tax base is positive, it shall be apportioned in accordance with Chapter VIII.
Amendment 189 #
Proposal for a directive Article 9 – paragraph 2 2. Groups shall apply a consistent and adequately documented method for recording intra-group transactions. Groups may change the method only for valid commercial reasons and only at the beginning of a tax year. The Commission shall provide guidelines on what an adequate and consistent documentation method entails.
Amendment 190 #
Proposal for a directive Article 9 – paragraph 2 2. Groups shall apply a consistent and adequately documented method for recording intra-group transactions.
Amendment 191 #
Proposal for a directive Article 9 – paragraph 2 2. Groups shall apply a consistent and adequately documented method for recording intra-group transactions.
Amendment 192 #
Proposal for a directive Article 9 – paragraph 2 2. Groups shall apply a consistent and adequately documented method for recording intra-group transactions.
Amendment 193 #
Proposal for a directive Article 9 – paragraph 3 Amendment 194 #
Proposal for a directive Article 9 – paragraph 3 Amendment 195 #
Proposal for a directive Article 9 – paragraph 4 Amendment 196 #
Proposal for a directive Article 9 – paragraph 4 Amendment 197 #
Proposal for a directive Article 9 – paragraph 4 a (new) 4a. All such intra-group transactions shall be eliminated from the tax base as a result of the consolidation required by Article 7 (1).
Amendment 198 #
Proposal for a directive Article 11 – paragraph 4 4. The taxpayer that, as a result of a business reorganisation, no longer exists or no longer has a permanent or virtual permanent establishment in the Member State in which it was resident for tax purposes on the date that it joined the group, shall be considered to have a permanent or virtual permanent establishment in that Member State for the purpose of applying this Article.
Amendment 199 #
Proposal for a directive Article 15 Amendment 200 #
Proposal for a directive Article 22 – paragraph 3 3. For the purpose of applying this Article, the transferring taxpayer referred to in paragraph 2 that no longer exists or no longer has a permanent or virtual permanent establishment in the Member State from which the assets were transferred shall be considered to have a permanent or virtual permanent establishment in that Member State.
Amendment 201 #
Proposal for a directive Article 23 – paragraph 1 – subparagraph 1 Where, as a result of a business reorganisation, one or more groups, or two or more group members, become part of another group, any unrelieved losses of the previously existing group or groups shall be allocated to each of the group members in accordance with Chapter VIII and on the basis of the factors as they stand at the end of the tax year in which the business reorganisation takes place. Unrelieved losses of the previously existing group or groups shall be carried forward
Amendment 202 #
Proposal for a directive Article 23 – paragraph 1 – subparagraph 1 Where, as a result of a business reorganisation, one or more groups, or two or more group members, become part of another group, any unrelieved losses of the previously existing group or groups shall be allocated to each of the group members in accordance with Chapter VIII and on the basis of the factors as they stand at the end of the tax year in which the business reorganisation takes place. Unrelieved losses of the previously existing group or groups shall be carried forward for
Amendment 203 #
Proposal for a directive Article 23 – paragraph 1 – subparagraph 2 Where two or more group members become part of another group, no unrelieved losses of the first group shall be allocated as referred to in subparagraph 1
Amendment 204 #
Proposal for a directive Article 23 – paragraph 2 2. Where two or more principal taxpayers merge within the meaning of points (i) and (ii) of Article 2(a) of Council Directive 2009/133/EC15
Amendment 205 #
Proposal for a directive Article 23 – paragraph 2 2. Where two or more principal taxpayers merge within the meaning of points (i) and (ii) of Article 2(a) of Council Directive 2009/133/EC15
Amendment 206 #
Proposal for a directive Article 24 – paragraph 3 3. Where the beneficial owner of the shares that were disposed of is a non- taxpayer or a non-resident taxpayer with those shares attributed to its head office or permanent or virtual permanent establishment in a third country, the market value of the asset or assets at the time of the disposal of the shares, less the value for tax purposes, shall be deemed to have been received by the taxpayer that held the assets prior to the intra-group transaction referred to in the first paragraph.
Amendment 207 #
Proposal for a directive Article 25 – paragraph 2 2. The tax credit referred to in paragraph 1 shall be calculated separately for each Member State or third country as well as for each type of income. It shall not exceed the amount resulting from subjecting the income attributed to a taxpayer or to a permanent or virtual permanent establishment to the corporate tax rate of the Member State where the taxpayer is resident for tax purposes or where
Amendment 208 #
Proposal for a directive Article 26 – paragraph 1 Interest
Amendment 209 #
Proposal for a directive Article 27 – paragraph 1 The treatment of an entity located in a third country in which at least two group members hold an interest shall be determined by an agreement between the relevant Member States.
Amendment 210 #
Proposal for a directive Article 28 Amendment 211 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 1 The consolidated tax base shall be shared
Amendment 212 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 1 The consolidated tax base shall be shared between the group members in each tax year on the basis of a formula for apportionment.
Amendment 213 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 1 The consolidated tax base shall be shared between the group members in each tax year on the basis of a formula for apportionment. In determining the
Amendment 214 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 1 a (new) As far as non-digital activities are concerned, , the formula for determining the apportioned share of a group member A shall take the following form, giving equal weight to the factors of sales, labour and assets:
Amendment 215 #
Proposal for a directive Article 28 – paragraph 1 – formula Amendment 216 #
Proposal for a directive Article 28 – paragraph 1 – formula Amendment 217 #
Proposal for a directive Article 28 – paragraph 1 – formula Amendment 218 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 2 a (new) As far as digital activities are concerned, the formula for determining the apportioned share of a group member A shall take the following form, giving equal weight to the factors of revenues, labour, assets, and users:
Amendment 219 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 2 a (new) Share A = (1/2 (Sales^A/Sales^Group) + 1/2 (1/2(Payroll^A/Payroll^Group) + 1/2(No of employees^A/No of employees^Group))) * Con'd Tax Base
Amendment 220 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 2 b (new) Share A= [1/4 (Revenues generated from data collected by A)/(Revenues of the Group) + 1/4 (No of users A)/(No of users of the Group)) + 1/4 (1/2 (Payroll A)/(Payroll Group) + 1/2 (No of employees A)/(No of employees Group)) + 1/4 (Assets A)/(Assets Group)
Amendment 221 #
Proposal for a directive Article 28 – paragraph 1 – subparagraph 2 c (new) The Commission shall adopt delegated acts in accordance with Article XX to lay down the detailed rules on how the revenues generated from collected data as well as how the number of user shall be defined and calculated depending on the type of digital business concerned.
Amendment 222 #
Proposal for a directive Article 28 – paragraph 5 Amendment 223 #
Proposal for a directive Article 28 – paragraph 5 5. When determining the apportioned share of a group member, equal weight shall be given to the factors of sales
Amendment 224 #
Proposal for a directive Article 29 A
Amendment 225 #
Proposal for a directive Article 29 – paragraph 1 Amendment 226 #
Proposal for a directive Article 29 – paragraph 1 a (new) In the event of no agreement between the competent authorities, the case shall be considered a dispute, that shall be resolved in accordance with article 65.
Amendment 227 #
Proposal for a directive Article 31 – paragraph 1 The factors used in calculating the apportioned share of a group member holding an interest in a transparent entity shall include the sales
Amendment 228 #
Proposal for a directive Article 32 – paragraph 3 3. The definition of an employee
Amendment 229 #
Proposal for a directive Article 34 Amendment 230 #
Proposal for a directive Article 34 – paragraph 1 1. The asset factor shall consist of the average value of all
Amendment 231 #
Proposal for a directive Article 34 – paragraph 2 Amendment 232 #
Proposal for a directive Article 34 – paragraph 2 2. I
Amendment 233 #
Proposal for a directive Article 35 Amendment 234 #
Proposal for a directive Article 35 a (new) Amendment 235 #
Proposal for a directive Article 36 Amendment 236 #
Proposal for a directive Article 37 – paragraph 1 1. The sales factor shall consist of the total sales allocated to a group member, including permanent and virtual permanent establishments that are considered to exist pursuant to Article 22(3), as its numerator and the total sales of the group as its denominator.
Amendment 237 #
Proposal for a directive Article 38 – paragraph 1 1. Sales of goods shall be included in the sales factor of the group member located in the Member State where the dispatch or transport of the goods to the person acquiring them ends. Where that place cannot be determined or the group member has no taxable nexus, the sales of goods shall be attributed to the group member located in the Member State of the last identifiable location of the goods.
Amendment 238 #
Proposal for a directive Article 38 – paragraph 4 4. Where there is no group member in the Member State where the goods are delivered or the services 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 group members in proportion to their labour
Amendment 239 #
Proposal for a directive Article 38 – paragraph 5 5. Where there is more than one 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 group members located in that Member State in proportion to their labour
Amendment 240 #
Proposal for a directive Article 39 – paragraph 1 The Commission may adopt acts laying down detailed rules on the calculation of the labour, asset, sales, data and
Amendment 241 #
Proposal for a directive Article 39 – paragraph 1 The Commission may adopt acts laying down detailed rules on the calculation of the labour
Amendment 242 #
Proposal for a directive Article 40 – paragraph 1 Amendment 243 #
Proposal for a directive Article 40 – paragraph 2 2. The sales factor of a financial institution, as referred to in point (29)(a), (d), (e), (f), (g), (h) and (i) of Article 4 of
Amendment 244 #
Proposal for a directive Article 41 – paragraph 1 Amendment 245 #
Proposal for a directive Article 41 – paragraph 2 2. The sales factor of an insurance undertaking, as referred to in point (29)(b) and (c) of Article 4 of Directive 2016/xx/EU, shall be
Amendment 246 #
Proposal for a directive Article 44 – paragraph -1 (new) -1. No deductions shall be allowed to the extent that they would lead to an effective corporate tax rate lower than 18% on revenues, excluding exempt revenues.
Amendment 247 #
Proposal for a directive Article 45 – paragraph 1 The tax liability of each group member shall be the outcome of the application of the national tax rate to the apportioned share, adjusted in accordance with Article 44, and further reduced with the deductions provided for in Article 25. A minimum effective corporate tax rate shall be set at 18%.
Amendment 248 #
Proposal for a directive Article 45 – paragraph 1 a (new) The Commission shall put forward by 1 January 2019 a legislative proposal for a minimum effective corporate tax rate at 18% in each Member State, for the purpose of maximisation of tax efficiency, so as to make it possible to compare rates across the Union and which feeds into the Union own resources. This rate shall be applied after a phasing-in of five years in line with the convergence code.
Amendment 249 #
Proposal for a directive Article 45 a (new) Article 45a Tax revenues generated from the common consolidated corporate tax base The Commission shall by 31st of December 2019 at the latest propose a regulation on making the CCCTB-based own resource available to the EU budget. Through this regulation a common rate shall be introduced. This shall be a rate of 5% of the common consolidated corporate tax base, which shall flow into the European budget as a new genuine own resource, in order to proportionally reduce Member State contributions to the same budget.
Amendment 250 #
Proposal for a directive Article 46 – paragraph 3 3. The principal tax authority shall transmit the notice immediately to the competent authorities of all Member States in which group members are resident for tax purposes or situated in the form of a permanent or virtual permanent establishment. Those authorities may submit their views and any relevant information on the validity and scope of the notice to the principal tax authority within one month of its transmission.
Amendment 251 #
Proposal for a directive Article 47 – paragraph 1 1. This Directive shall start applying to a group one month after the notice to create a group was received, as referred to in Article 46(3), by the competent authorities of all Member States in which group members are resident for tax purposes or situated in the form of a permanent or virtual permanent establishment. The principal tax authority shall inform the principal taxpayer in this regard.
Amendment 252 #
Proposal for a directive Article 48 – paragraph 2 The Commission
Amendment 253 #
Proposal for a directive Article 51 – paragraph 3 3. Where the consolidated tax return does not have the legal status of a tax assessment for the purposes of enforcing a tax debt, the competent authority of a Member State may, in respect of a group member that is resident for tax purposes or situated there in the form of a permanent or virtual permanent establishment, issue an instrument of national law authorising enforcement in that Member State. That instrument shall incorporate the data in the consolidated tax return concerning the group member. Appeals shall be permitted against the instrument exclusively on grounds of form and not to the underlying tax assessment. The procedure shall be governed by the national law of the relevant Member State.
Amendment 254 #
Proposal for a directive Article 51 – paragraph 4 4. The principal taxpayer shall be responsible for all procedural obligations relating to the taxation of permanent or virtual permanent establishments as referred to in Article 11(4) or Article 22(3).
Amendment 255 #
Proposal for a directive Article 55 – paragraph 1 The Commission
Amendment 256 #
Proposal for a directive Article 56 – paragraph 5 – subparagraph 1 Prior to issuing an amended tax assessment, the principal tax authority shall consult the competent authorities of the Member States in which a group member is resident for tax purposes or situated in the form of a permanent or virtual permanent establishment. Those authorities may express their views within one month of consultation.
Amendment 257 #
Proposal for a directive Article 56 – paragraph 5 – subparagraph 2 The competent authority of a Member State in which a group member is resident for tax purposes or situated in the form of a permanent or virtual permanent establishment may call on the principal tax authority to issue an amended tax assessment. Failure of the principal tax authority to notify within three months of that call to the competent authority that it undertakes to issue that amended tax assessment shall be treated as a refusal.
Amendment 258 #
Proposal for a directive Article 58 – paragraph 2 In exceptional circumstances, the competent tax authorities of the Member States in which the group members are resident or in which they have a permanent or virtual permanent establishment may, within six months of the notice referred to in Article 46 or within six months of a reorganisation involving the principal taxpayer, decide by common agreement that a taxpayer other than the taxpayer designated by the group shall be the principal taxpayer.
Amendment 259 #
Proposal for a directive Article 60 – paragraph 1 A taxpayer shall at the request of the competent authority of the Member State in which it is resident or in which its permanent or virtual permanent establishment is situated provide all information foreseeably relevant to the determination of its tax liability. In addition, the principal taxpayer shall at the request of the principal tax authority provide all information foreseeably relevant to the determination of the consolidated tax base or of the tax liability of any group member.
Amendment 260 #
Proposal for a directive Article 61 – paragraph 1 – subparagraph 1 A taxpayer may request from the competent authority of the Member State in which it is resident or in which it has a permanent or virtual permanent establishment an opinion on the implementation of the rules of this Directive on a specific transaction or series of transactions that it plans to carry out. A taxpayer may also request an opinion on the proposed composition of a group. The competent authority shall take all possible steps to respond to the request within a reasonable time.
Amendment 261 #
Proposal for a directive Article 64 – paragraph 1 – subparagraph 2 Amendment 262 #
Proposal for a directive Article 65 – paragraph 1 1. Where the competent authority of the Member State in which a group member is resident for tax purposes or situated in the form of a permanent or virtual permanent establishment disagrees with a decision of the principal tax authority made pursuant to Articles 49 or 56(2) or (4) or the second subparagraph of Article 56(5) may challenge that decision before the courts of the Member State of the principal tax authority within a period of three months.
Amendment 263 #
Proposal for a directive Article 65 – paragraph 1 1. Where the competent authority of the Member State in which a group member is resident for tax purposes or situated in the form of a permanent establishment disagrees with a decision of the principal tax authority made pursuant to Articles 49 or 56(2) or (4) or the second subparagraph of Article 56(5) may challenge that decision
Amendment 264 #
Proposal for a directive Article 65 – paragraph 1 a (new) 1a. The Commission will consider different options for a proposal to establish a Dispute Settlement Mechanism for the purpose of this Directive.
Amendment 265 #
Proposal for a directive Article 67 – paragraph 1 1. Appeals against amended tax assessments or tax assessments made pursuant to Article 54 shall be heard by an
Amendment 266 #
Proposal for a directive Article 67 – paragraph 5 5.
Amendment 267 #
Proposal for a directive Article 69 – paragraph 2 2. Where paragraph 1 applies, the exceeding borrowing costs and EBITDA shall be calculated at the level of the group
Amendment 268 #
Proposal for a directive Article 69 – paragraph 2 2. Where paragraph 1 applies, the exceeding borrowing costs and EBITDA shall be calculated at the level of the group and comprise the results of all group members. The amount of EUR
Amendment 269 #
Proposal for a directive Article 69 – paragraph 2 2. Where paragraph 1 applies, the exceeding borrowing costs and EBITDA shall be calculated at the level of the group and comprise the results of all group members
Amendment 270 #
Proposal for a directive Article 71 Amendment 271 #
Proposal for a directive Article 71 Amendment 272 #
Proposal for a directive Article 71 Amendment 273 #
Proposal for a directive Article 72 Amendment 274 #
Proposal for a directive Article 72 – paragraph 1 Amendment 275 #
Proposal for a directive Article 72 – paragraph 1 For the purposes of this Directive, the reference to the statutory corporate tax rate that the taxpayer would have been subject to in the first subparagraph of Article 53(1) of Directive 2016/xx/EU shall not apply and shall be replaced by
Amendment 276 #
Proposal for a directive Article 72 – paragraph 1 For the purposes of this Directive, the reference to the
Amendment 277 #
Proposal for a directive Article 73 – paragraph 1 For the purposes of this Directive, the scope of controlled foreign company legislation applies as defined under Article 59 of Directive 2016/xx/EU
Amendment 278 #
Proposal for a directive Article 73 – paragraph 1 For the purposes of this Directive, the scope of controlled foreign company legislation under Article 59 of Directive 2016/xx/EU shall be limited to relations between group members and entities that are resident for tax purposes, or permanent establishments or digital business establishments that are situated, in a third country.
Amendment 279 #
Proposal for a directive Article 73 – paragraph 1 For the purposes of this Directive, the scope of controlled foreign company legislation under Article 59 of Directive 2016/xx/EU shall be limited to relations between group members and entities that are resident for tax purposes, or trust, partnership and permanent establishments that are situated, in a third country.
Amendment 280 #
Proposal for a directive Article 74 – paragraph 1 For the purposes of this Directive, the scope of the rules on hybrid mismatches
Amendment 281 #
Proposal for a directive Article 75 a (new) Article 75a Minimum effective tax rate and contribution to the Union budget 1. Two years after the date of implementation of this Directive, Member States shall not be allowed to set an effective corporate tax rate below 20%, whilst no upper limit is set by this Directive. 2. By way of derogation of paragraph 1, Member States may request an extended deadline to the European Commission, so as to keep an effective corporate tax rate below 20% for longer than two years after the implementation of this Directive, but for no longer than seven years after its implementation. The derogation request shall be motivated and authorised by the European Commission. When deciding on a possible extension of the phasing-in period for a particular Member State, due account shall be taken of the specific situation of that Member State, the objective reasons for the request, and the impact of such a derogation on other Member States. 3. The Commission shall put forward by [two years after the entry into application of this Directive] a legislative proposal for the allocation of a part of the fiscal revenues generated from the common consolidated corporate tax base to the budget of the European Union in order to increase its own resources.
Amendment 282 #
Proposal for a directive Article 75 b (new) Article 75b CCCTB forum The Commission shall establish a CCCTB forum to which companies and Member States may refer questions and general disputes relating to the CCCTB. That forum shall provide guidance to companies and Member States and shall be coordinated and chaired by Commission services.
Amendment 283 #
Proposal for a directive Article 76 – paragraph 1 The European Parliament shall assess and be informed of the adoption of delegated acts by the Commission, of any objection formulated to them, and of the revocation of that delegation of powers by the Council.
Amendment 284 #
Proposal for a directive Article 76 – paragraph 1 a (new) The European Parliament shall produce an assessment of the CCCTB regime, once it has been adopted, by the end of every tax year. That assessment shall take into account the views of national parliaments and the outcomes of the tax policy discussions held under the procedure of the European Semester, which shall include tax indicators such as action to control harmful tax practices in the Member States, particularly during inter-parliamentary conferences. The European Parliament shall send its opinion and conclusions through a resolution to the Commission and the Council by the end of every tax year.
Amendment 285 #
Proposal for a directive Article 79 – paragraph 1 The Commission shall,
Amendment 286 #
Proposal for a directive Article 79 – paragraph 1 The Commission shall, five years after the entry into force of this Directive, review its application and report to the Council on the operation of this Directive. The report shall in particular include an analysis of the impact of the mechanism set up in Chapter VIII of this Directive on the apportionment of the tax bases between the Member States. In drawing the conclusions of such a review, the Commission shall propose the terms and conditions to allocate a part of the tax revenues generated from the common consolidated corporate tax base to the budget of the European Union in order to proportionally reduce Member States contributions to the same budget.
Amendment 287 #
Proposal for a directive Article 79 – paragraph 1 The Commission shall, five years after the entry into force of this Directive, review its application and report to the Council and the European Parliament on the operation of this Directive. The report shall in particular include an analysis of the impact of the mechanism set up in Chapter VIII of this Directive on the apportionment of the tax bases between the Member States.
Amendment 288 #
Proposal for a directive Article 79 – paragraph 1 a (new) The report by the Commission shall be accompanied by a legislative proposal to revise the provisions of this Directive concerning the definition and the method to calculate the consolidated tax base, in order to ensure a full consolidation. Such consolidated tax base shall in particular be based on one consistent set of accounting rules and be related to the group members adjusted cash flows.
Amendment 289 #
Proposal for a directive Article 79 – paragraph 1 b (new) Within 6 months after the adoption of this Directive, the Commission shall present a legislative proposal for a minimum effective tax rate at the European level, based on a comparative analysis of national effective tax rates.
Amendment 290 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 1 Member States shall adopt and publish, by
Amendment 291 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 1 Member States shall adopt and publish, by 31st December 20
Amendment 292 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 1 Member States shall adopt and publish, by 31st December 20
Amendment 293 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 1 Member States shall adopt and publish, by 31st December 20
Amendment 294 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 1 Member States shall adopt and publish, by 31st December 20
Amendment 295 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 1 Member States shall adopt and publish, by 31st December 202
Amendment 296 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 2 They shall apply those provisions from
Amendment 297 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 2 They shall apply those provisions from 1st January 20
Amendment 298 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 2 They shall apply those provisions from 1st January 202
Amendment 299 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 2 They shall apply those provisions from 1st January 202
Amendment 300 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 2 They shall apply those provisions from 1st January 202
Amendment 301 #
Proposal for a directive Article 80 – paragraph 1 – subparagraph 2 They shall apply those provisions from 1st January 202
Amendment 35 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Finally, the mainstream digitalisation of many sectors of the economy coupled to the fast developing digital economy, based on transactions making intensive use of intangible assets that are sometimes very difficult to value and compare with other assets, questions the consistence of the Union corporate tax models designed for brick and mortar industries, to the extent that valuation and calculation criteria may be re-invented to fit 21st century commercial activities. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which impede the proper functioning of the internal market. Action to rectify these problems should therefore address both these types of market deficiencies.
Amendment 36 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers
Amendment 37 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which impede the proper functioning of the internal market and create distortion between large companies and small and medium enterprises. Action to rectify these problems should therefore address both these types of market deficiencies.
Amendment 38 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Digitisation greatly facilitates cross border business. Removing barriers to the Single Market, including tax barriers, and creating a more favourable business environment through neutral, simplified and coordinated tax rules is therefore more important than ever. Current rules may need to be adapted to respond to the digitalisation of our economy. Although those situations highlight shortcomings that are completely different in nature, they
Amendment 39 #
Proposal for a directive Recital 1 (1)
Amendment 40 #
Proposal for a directive Recital 1 (1) Companies which seek to do
Amendment 41 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more
Amendment 42 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which impede the proper functioning of the internal market. Action to rectify these problems should therefore address both these types of market deficiencies while respecting the principle of tax neutrality but also the free movement of services in the European Single Market.
Amendment 43 #
Proposal for a directive Recital 1 (1) Companies which seek to do business across frontiers within the Union encounter serious obstacles and market distortions owing to the existence and interaction of 28 disparate corporate tax systems. Furthermore, tax planning structures have become ever-more sophisticated over time, as they develop across various jurisdictions and effectively take advantage of the technicalities of a tax system or of mismatches between two or more tax systems for the purpose of reducing the tax liability of companies. Although those situations highlight shortcomings that are completely different in nature, they both create obstacles which impede the proper functioning of the internal market. Action to rectify these problems should therefore address both these types of
Amendment 44 #
Proposal for a directive Recital 1 a (new) (1a) Companies, both big and small, which seek to do business irrespective of their location in the Union need first and foremost long-term legal clarity and certainty in order to stimulate (long-term) investments. Member States who are able to provide legally sound, long-term legal clarity and certainty will always be an attractive location for companies to operate from.
Amendment 45 #
Proposal for a directive Recital 1 a (new) (1a) Tax policy and the ability to set corporate tax rates remains a national competence. While administrative simplification of corporate taxation systems may lead to greater efficiencies, the likely impact of a common consolidated tax base is an intrusion into Member States' tax policy and their ability to set corporate tax rates into the future.
Amendment 46 #
Proposal for a directive Recital 1 a (new) (1a) Taxation is a national competence, dependent on the political view and actions of governments and parliaments, based upon fiscal policies and political aspirations regarding public spending.
Amendment 47 #
Proposal for a directive Recital 1 b (new) (1b) It is the responsibility of the tax authority in every nation in cooperation with each other to secure that taxes are paid and to define where taxes shall be paid dependent on the character of the business.
Amendment 48 #
Proposal for a directive Recital 1 b (new) (1b) Corporate tax rates within the Union paint a very diffuse picture of the different levels of tax burdens on companies. Effective tax rates, however, show different and in some cases even opposite results.
Amendment 49 #
Proposal for a directive Recital 2 (2) To support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped
Amendment 50 #
Proposal for a directive Recital 2 (2) To support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated. It is therefore necessary to provide for mechanisms that discourage companies from taking advantage of mismatches amongst national tax systems in order to lower their tax liability. It is equally important to also stimulate growth and economic development in the internal market by facilitating cross-border trade and corporate investment. To this end, it is necessary to eliminate
Amendment 51 #
Proposal for a directive Recital 2 (2) To support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated. It is therefore necessary to
Amendment 52 #
Proposal for a directive Recital 2 (2) To support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated by providing for effective taxation mechanisms based on tangible data that is hard to transfer or conceal, such as sales revenue and staff numbers employed. It is therefore necessary to provide for mechanisms that discourage companies from taking advantage of mismatches amongst national tax systems in order to lower their tax liability. It is equally important to also stimulate growth
Amendment 53 #
Proposal for a directive Recital 2 (2) To support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated and where they have economic substance. It is therefore necessary to provide for mechanisms that
Amendment 54 #
Proposal for a directive Recital 2 (2) To support the proper functioning of the internal market, the corporate tax environment in the Union should be shaped in accordance with the principle that companies pay their fair share of tax in the jurisdiction(s) where their profits are generated. It is therefore necessary to provide for mechanisms that discourage companies from taking advantage of mismatches amongst national tax systems in order to lower their tax liability. It is equally important to also stimulate growth and economic development in the internal market by facilitating cross-border trade and corporate investment. To this end, it is necessary to eliminate
Amendment 55 #
Proposal for a directive Recital 2 a (new) (2a) Moreover, diversity of tax regimes may attract foreign investors to invest their funds in peripheral countries, regions and islands. Thus, diversity of tax regimes allows these regions to draw cross border investments that would otherwise locate elsewhere. As such, diversity of tax regimes is accepted as reasonable, useful and sustainable for peripheral regions, in order to stimulate job creation and new economic activities.
Amendment 56 #
Proposal for a directive Recital 3 (3) As pointed out in the proposal of 16 March 2011 for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB)7 , a corporate tax system which treats the Union as a single market for the purpose of computing the corporate tax base of companies would facilitate cross-border activity for companies resident in the Union and promote the objective of making it a more competitive location for investment internationally. The
Amendment 57 #
Proposal for a directive Recital 3 (3) As pointed out in the proposal of 16 March 2011 for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB)7
Amendment 58 #
Proposal for a directive Recital 3 (3) As pointed out in the proposal of 16 March 2011 for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB)7
Amendment 59 #
Proposal for a directive Recital 3 (3) As pointed out in the proposal of 16 March 2011 for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB)
Amendment 60 #
Proposal for a directive Recital 3 a (new) (3a) The European Commission, in its communication to the European Parliament and the Council of 21 September 2017 entitled "A fair and efficient tax system in the European Union for the Digital Single Market", believes that the CCCTB offers the basis to address the tax challenges posed by the digital economy.
Amendment 61 #
Proposal for a directive Recital 3 a (new) (3a) In addition, improving the internal market is the key factor for encouraging growth and job creation. The introduction of a CCCTB should improve growth and lead to more jobs in the Union by reducing the administrative costs for companies, particularly for small businesses operating in several Member States.
Amendment 62 #
Proposal for a directive Recital 3 a (new) (3a) The ability to set tax rates and control tax collection systems must remain in the hands of Member States.
Amendment 63 #
Proposal for a directive Recital 3 b (new) (3b) The adoption of proposals relating to taxation must continue to be made according to the principle of unanimity in the Council.
Amendment 64 #
Proposal for a directive Recital 3 c (new) (3c) For unitary taxation to work as a means to end profit-shifting it needs to be global, and that implementing the CCCTB at an EU level runs the risk that current losses from EU members to the rest of world could be locked in, as could the exploitation of the rest of the world by some Member States. An EU-only approach could eliminate the incentives to profit shift within the EU, but exacerbate the incentives and opportunity to profit shift out of the EU. For this reason full- inclusion CFC rules should apply. No income arising from economic activity undertaken by the CFC should be exempted.
Amendment 65 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is
Amendment 66 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is
Amendment 67 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment
Amendment 68 #
Proposal for a directive Recital 4 (4)
Amendment 69 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to divide the ambitious CCCTB initiative into two separate proposals. At a first stage, rules on a common corporate tax base should be agreed, before addressing, at a second stage, the issue of consolidation. But implementing the CCTB without consolidation would not tackle the problem of profit shifting. Therefore, it is essential that the consolidation is applied in all Member States from 31 December 2019.
Amendment 70 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to
Amendment 71 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to divide the ambitious CCCTB initiative into two separate proposals
Amendment 72 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to divide the ambitious CCCTB initiative into two separate proposals
Amendment 73 #
Proposal for a directive Recital 4 (4)
Amendment 74 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment
Amendment 75 #
Proposal for a directive Recital 4 (4) Considering the need to act swiftly in order to ensure a proper functioning of the internal market by making it, on the one hand, friendlier to trade and investment and, on the other hand, more resilient to tax avoidance schemes, it is necessary to d
Amendment 76 #
Proposal for a directive Recital 4 (4) Considering the need to
Amendment 77 #
Proposal for a directive Recital 4 a (new) (4a) It should be considered that no sufficiently detailed impact assessment has been conducted on either the CCTB or CCCTB proposals. To understand the true impact of the proposals, particularly in terms of the impact on Member States' corporate tax revenue, it is necessary for a detailed impact assessment to be conducted on a country-by-country basis, which considers all different national systems of corporate tax collection.
Amendment 78 #
Proposal for a directive Recital 5 Amendment 79 #
Proposal for a directive Recital 5 Amendment 80 #
Proposal for a directive Recital 5 Amendment 81 #
Proposal for a directive Recital 5 (5) Many aggressive tax planning structures tend to feature in a cross-border context, which implies that the participating groups of companies possess a minimum of resources. On this premise, for reasons of proportionality, the rules on
Amendment 82 #
Proposal for a directive Recital 5 (5) Many aggressive tax planning structures tend to feature in a cross-border context, which implies that the participating groups of companies possess a minimum of resources. On this premise, for reasons of proportionality, the rules on a CCCTB should be mandatory only for groups of companies of a substantial size. For that purpose, a size-related threshold should be fixed on the basis of the total consolidated revenue of a group which files consolidated financial statements. In addition, in order to better serve the aim of facilitating trade and investment in the internal market, the rules on a CCCTB should also be available, as an option, to those groups that fall short of the size- related threshold. Five years after the entry into force of this Directive, the Commission shall, in its review, assess the impact of making this system mandatory for all companies and, if appropriate, issue a legislative proposal to amend this Directive accordingly.
Amendment 83 #
Proposal for a directive Recital 5 (5) Many aggressive tax planning structures tend to feature in a cross-border context, which implies that the participating groups of companies possess a minimum of resources. On this premise, for reasons of proportionality, the rules on a CCCTB should be mandatory only for groups of companies of a substantial size. For that purpose, a size-related threshold should be fixed on the basis of the total consolidated revenue of a group which files consolidated financial statements. In addition, in order to better serve the aim of facilitating trade and investment in the internal market, the rules on a CCCTB should also be available, as an option, to those groups that fall short of the size- related threshold. It is important, however, to realise that giving the ability to companies to choose between the harmonised rules and the rules of national tax laws can create new possibilities for tax avoidance.
Amendment 84 #
Proposal for a directive Recital 5 a (new) (5a) All things being equal the switch to a common consolidated corporate tax base may result in loss or gain of fiscal revenues for Member States. In order to compensate losses, a temporary compensation fund is created, financed with the fiscal surplus from Member States with gain in fiscal revenue, due to the new regime. Compensation will be adjusted each year to take into account possible national or regional decisions taken prior to the entry into force of the directive. The Commission should be required to propose the removal or the change of the compensation system after a period of five years, and to set the ceilings for compensation.
Amendment 85 #
Proposal for a directive Recital 5 a (new) (5a) For reasons of proportionality, the rules for the CC and CCCTB should in a first step only be mandatory for companies which belong to a group above a certain size. For that purpose, a size- related threshold should be fixed on the basis of the total consolidated revenue of a group which files consolidated financial statements. In addition, to ensure coherence between the two steps of the CCCTB initiative, the rules on a common base should be mandatory for companies which would be considered as a group. After a transitional period of several years, the new rules should be compulsory for all companies.
Amendment 86 #
Proposal for a directive Recital 5 a (new) (5a) All things being equal the switch to a common consolidated corporate tax base may result in loss or gain of fiscal revenues for Member States. In order to compensate losses, a temporary compensation fund is created, financed with the fiscal surplus from Member States with gain in fiscal revenue, due to the new regime. Compensation will be based on an assessment of the tax revenues that would have been obtained if the tax laws as of 31 December 2016 had been applicable. The compensation fund expires five years after entry into force of this Directive, unless the Council unanimously decides otherwise.
Amendment 87 #
Proposal for a directive Recital 5 a (new) (5a) One of the main problems encountered by the tax authorities is the impossibility of gaining access in due time to comprehensive and relevant information about MNEs' tax planning strategies. Such information should be made publicly available, in order for tax authorities to react quickly to tax risks, by assessing those risks more effectively, targeting checks and alerting about changes required to the legislation in force.
Amendment 88 #
Proposal for a directive Recital 5 a (new) (5a) In order to avoid the existing breakdown of the tax effort between small and medium enterprises (SMEs) and Multinational Corporations (MNCs) as mentioned in the European Parliament resolution of 25 November 2015 on tax rulings and other measures similar in nature or effect (2015/2066(INI)), a common corporate tax base should not put SMEs at a competitive disadvantage, enhancing a level playing field for SME's.
Amendment 89 #
Proposal for a directive Recital 5 a (new) (5a) Taking into account the digital change in the business environment, it is necessary to define the concept of a digital business establishment. Companies which raise revenues in a Member State without having a physical establishment in that Member State have to be treated in the same way as companies with a physical establishment.
Amendment 90 #
Proposal for a directive Recital 5 a (new) (5a) Aggressive tax planning by multinational companies is a global problem that requires a global solution. The ideal way to tackle this problem is on an internationally agreed basis through the OECD Base Erosion and Profit Shifting (BEPS) initiative.
Amendment 91 #
Proposal for a directive Recital 5 b (new) (5b) In order to create a level playing field and to eliminate tax competition and the resulting race to the bottom as regards corporate taxation levels, minimum effective corporate tax rate should be introduced in parallel of the common consolidated corporate tax base so as to avoid transferring unfair competition on the tax base to unfair competition on the tax rates. This Directive therefore sets a minimum corporate tax rate at 20% in each Member State, applicable two years after the date of implementation of the present Directive, with a possibility for Member States to extend this deadline up to five years subject to a prior authorisation by the Commission.
Amendment 92 #
Proposal for a directive Recital 5 b (new) (5b) The principal tax authority will provide SME's with the necessary tools that will help them to comply with the administrative and organisational requirements that an opt-in to the CCCTB entails.
Amendment 93 #
Proposal for a directive Recital 5 b (new) (5b) In order to put a halt to the detrimental race to the bottom in tax rates across the EU, the Commission should put forward a proposal ensuring a minimum effective corporate tax rate of 25% across Member States.
Amendment 94 #
Proposal for a directive Recital 5 c (new) (5c) A severe lack in investments has been one of the root causes of the Union economic troubles but the Union budget is still insufficiently geared towards future- oriented investments. Creating additional Union budget related resources is possible according to the existing flexibilities of the Treaty. This proposal therefore includes the objective to have a part of the EU fiscal revenues financed from the common consolidated corporate tax base.
Amendment 95 #
Proposal for a directive Recital 6 (6) Eligibility for the consolidated tax group should be determined in accordance with a
Amendment 96 #
Proposal for a directive Recital 6 (6) Eligibility for the consolidated tax group should be determined in accordance with a two-part test based on (i) control (more than 25
Amendment 97 #
Proposal for a directive Recital 6 (6) Eligibility for the consolidated tax group should be determined in accordance with a two-
Amendment 98 #
Proposal for a directive Recital 6 (6) Eligibility for the consolidated tax group should be determined in accordance with a two-part test based on (i) control (more than 50 percent of voting rights) and (ii) ownership (more than 75 percent of
Amendment 99 #
Proposal for a directive Recital 6 a (new) (6a) Taxing the digital economy at a global level has been a number one priority in the OECD BEPS Action Plan. Therefore, any attempt made to impose a new tax on the digital economy at EU level could put Europe at a mismatch to the rest of the world given that the digital economy is global in nature. As part of the OECD BEPS Action Plan, a report with recommendations on taxing the digital economy at a global level will be published in Spring 2018; any decision to plan for a tax on the digital economy at an EU level in advance of this report would be unnecessary and premature.
source: 609.575
|
History
(these mark the time of scraping, not the official date of the change)
2017-11-18Show (4) Changes | Timetravel
| activities/1/committees/0/shadows/4/mepref |
Old
53b2d8e0b819f205b000004aNew
5a0cf707d1d1c556ab000002 |
| activities/1/committees/0/shadows/4/name |
Old
DE MASI FabioNew
SCHIRDEWAN Martin |
| committees/0/shadows/4/mepref |
Old
53b2d8e0b819f205b000004aNew
5a0cf707d1d1c556ab000002 |
| committees/0/shadows/4/name |
Old
DE MASI FabioNew
SCHIRDEWAN Martin |
2017-11-10Show (1) Changes | Timetravel
| activities/4/date |
Old
2018-01-16T00:00:00New
2018-03-13T00:00:00 |
2017-11-09Show (1) Changes | Timetravel
| activities/4/date |
Old
2017-12-04T00:00:00New
2018-02-21T00:00:00 |
2017-10-27Show (1) Changes | Timetravel
| activities/4/date |
Old
2017-12-11T00:00:00New
2018-01-16T00:00:00 |
2017-09-23Show (1) Changes | Timetravel
| links/Research document |
|
2017-07-13Show (5) Changes | Timetravel
| activities/0 |
|
| activities/2/council |
Economic and Financial Affairs ECOFIN
|
| activities/2/docs |
|
| activities/2/meeting_id |
3506
|
| activities/2/type |
Old
Debate in CouncilNew
Council Meeting |
2017-07-12Show (5) Changes | Timetravel
| activities/0 |
|
| activities/1/council |
Economic and Financial Affairs ECOFIN
|
| activities/1/docs |
|
| activities/1/meeting_id |
3506
|
| activities/1/type |
Old
Council MeetingNew
Debate in Council |
2017-06-24Show (2) Changes | Timetravel
| activities/0/commission/0 |
|
| other/0 |
|
2017-05-06Show (1) Changes | Timetravel
| links/Research document |
|
2017-05-05Show (1) Changes | Timetravel
| activities/3/date |
Old
2017-11-20T00:00:00New
2017-12-04T00:00:00 |
2017-04-21Show (1) Changes | Timetravel
| activities/4 |
|
2017-04-08Show (4) Changes | Timetravel
| activities/1/committees/0/shadows/2/mepref |
Old
4f1ac934b819f25efd00011aNew
57327be2d1d1c56688000000 |
| activities/1/committees/0/shadows/2/name |
Old
IN 'T VELD SophiaNew
WIERINCK Lieve |
| committees/0/shadows/2/mepref |
Old
4f1ac934b819f25efd00011aNew
57327be2d1d1c56688000000 |
| committees/0/shadows/2/name |
Old
IN 'T VELD SophiaNew
WIERINCK Lieve |
2017-03-13Show (1) Changes | Timetravel
| activities/0/docs/0/celexid |
CELEX:52016PC0683:EN
|
2017-03-12Show (1) Changes | Timetravel
| activities/0/docs/0/celexid |
CELEX:52016PC0683:EN
|
2017-02-16Show (3) Changes | Timetravel
| activities/1/committees/0/shadows/5 |
|
| activities/3 |
|
| committees/0/shadows/5 |
|
2017-02-08Show (2) Changes | Timetravel
| activities/1/committees/0/shadows/6 |
|
| committees/0/shadows/6 |
|
2017-02-02Show (4) Changes | Timetravel
| activities/1/committees/0/shadows/3 |
|
| activities/1/committees/0/shadows/4 |
|
| committees/0/shadows/3 |
|
| committees/0/shadows/4 |
|
2017-01-27Show (2) Changes | Timetravel
| activities/1/committees/0/shadows/3 |
|
| committees/0/shadows/3 |
|
2017-01-25Show (4) Changes | Timetravel
| activities/1/committees/0/shadows/0 |
|
| activities/1/committees/0/shadows/2 |
|
| committees/0/shadows/0 |
|
| committees/0/shadows/2 |
|
2016-12-22Show (4) Changes | Timetravel
| activities/1/committees/0/date |
2016-11-22T00:00:00
|
| activities/1/committees/0/rapporteur |
|
| committees/0/date |
2016-11-22T00:00:00
|
| committees/0/rapporteur |
|
2016-12-17Show (2) Changes | Timetravel
| activities/1/committees/0/shadows |
|
| committees/0/shadows |
|
2016-12-10Show (1) Changes | Timetravel
| activities/2 |
|
2016-12-02Show (4) Changes | Timetravel
| activities/1/committees/2/date |
2016-11-28T00:00:00
|
| activities/1/committees/2/rapporteur |
|
| committees/2/date |
2016-11-28T00:00:00
|
| committees/2/rapporteur |
|
2016-11-27Show (3) Changes | Timetravel
| activities/1 |
|
| procedure/dossier_of_the_committee |
ECON/8/08272
|
| procedure/stage_reached |
Old
Preparatory phase in ParliamentNew
Awaiting committee decision |
2016-11-26Show (2) Changes | Timetravel
| activities/0/docs/0/text |
|
| procedure/Mandatory consultation of other institutions |
Economic and Social Committee
|
2016-11-23Show (2) Changes | Timetravel
| committees/2/responsible |
False
|
| procedure/Mandatory consultation of other institutions |
Economic and Social Committee
|
2016-11-22Show (1) Changes | Timetravel
| activities/0/docs/0/celexid |
CELEX:52016PC0683:EN
|
2016-11-15Show (5) Changes
| activities |
|
| committees |
|
| links |
|
| other |
|
| procedure |
|