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Rules Against Tax Avoidance in the EU Internal Market

Summary

A proposal to fight tax avoidance by ensuring multinationals pay taxes where they actually generate value.
10 19.07.2016
Other
economy
taxation
social policy
european union
public administration
international relations
business and competition
simplification of legislation
financial institutions and credit
information technology and data processing

Key points

  • The directive aims to combat aggressive tax planning and ensure social justice within the internal market.
  • New rules would limit the amount of interest expenses a company can deduct, specifically capping it at 20% of its earnings before interest, tax, depreciation, and amortisation.
  • A jurisdiction may be classified as a secrecy or low-tax area if it fails to meet certain transparency standards starting from the end of 2016.
  • The Commission is required to evaluate how well these rules are working three years after they are implemented.
Documents (PDFs)
REPORT on the proposal for a Council directive laying down rules against tax avoidance practices that directly affect the functioning of the internal market Rules against certain tax avoidance practices *
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