Common consolidated corporate tax base across the EU
At present, EU enterprises have to deal with 27 different systems to compute their taxable base, which creates many problems related, for example, to transfer prices or cross-border loss recovery.
The EU Commission has been working intensively since 2004 on the project of a Common consolidated corporate tax base across the EU (CCCTB).
The CCCTB would offer to EU enterprises a number of advantages:
(i) It would first of all provide a common tax base. This would considerably reduce compliance costs;
(ii) It would eliminate the need to determine arms length transfer prices for intra group transactions.
(iii) It would provide a consolidation mechanism to offset profits and losses of the same company in different Member States.
The banking system is strongly interested in the EC Commission project for the creation of a Common Consolidated Corporate Tax Base (CCCTB). The introduction of a CCCTB would represent a crucial step towards a full economic integration of financial markets, since it would provide all companies operating in the EU with a common language in the field of taxation. It can ensure transparency and comparability in company tax systems in the same way as the adoption of IFRS ensures transparency and comparability of company accounts. It is understood that that financial institutions require special consideration: in particular, the treatment of financial activities by banks should receive a special consideration within the CCCTB in order to avoid unnecessary or unduly high compliance costs and to make EU banks more competitive on a global level.
• More on the reviewing process >>
• Text of the proposal >>