On 21 June 2016, the Council of the European Union issued a release announcing that agreement has been reached on a final draft of the Anti Tax Avoidance Directive originally proposed by the European Commission (previous coverage). The announcement follows a tentative agreement reached on 17 June 2016, subject to a silence procedure that ended at midnight on 20 June. The final draft includes anti-avoidance rules in five areas based on outcomes of Actions 2, 3 and 4 of the OECD BEPS Project and BEPS-related aspects of the proposed common consolidated corporate tax base (CCCTB). These include
EU Member States will have until 31 December 2018 to transpose the directive into their national laws and regulations, except for the exit taxation rules, which must be transposed by 31 December 2019. In addition, Member States that already have interest limitation rules in place may continue to apply those rules if they are equally effective as those under the Directive. The continued application of such existing interest limitation rules is allowed until the OECD reaches agreement on a minimum standard or until 1 January 2024 at the latest.
Formal adoption of the directive will take place at an upcoming Council meeting, and it will enter into force 20 days after it is published in the Official Journal of the EU.
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