The European Commission has launched a public consultation on an initiative for a roadmap to present its vision for a way forward to ensure that the EU business taxation system fits the modern economy, with a feedback period of 4 March to 1 April 2021.
What does the initiative aim to achieve and how
The current corporate tax framework is out of step with the new realities of a globalised and digitalised economy, and even less fit for the challenges to come, such as climate change and population aging. Preparing ourselves for the future requires the right tax environment to support our economy to grow and to ensure that everyone shares in the benefits. In the short to medium term, this means a level playing field between all companies, maintaining the EU’s competitiveness in the global marketplace, avoiding unnecessary administrative complexity and providing tax certainty. It also means securing sufficient and sustainable funding for investment in public infrastructure as well as for supporting regions, business sectors, and those hit hardest by the changes. In the medium to long term, this means rethinking and adapting our tax systems to ensure they are fit for the significant developments to come in a fair and efficient manner.
To deliver on this ambition, the European Commission is proposing to set out a medium-term vision and actions for business taxation in the EU. It will also take stock of OECD discussions on the reform of the international corporate taxation framework and articulate this with action at EU level. This will take the form of a Communication presenting the Commission’s proposed way vision, priorities and its underlying rationale.