Head Office Tax System for SMEs

by name voted on 10.04.2024

Summary

A proposal to simplify cross-border taxation for SMEs by allowing them to use their home country's tax rules for foreign branches or subsidiaries.

9 10.04.2024

Report

economy

finance

taxation

administrative reform

public administration

business and competition

Key points

In force from 01/01/2025

The initiative aims to reduce the heavy administrative burden on SMEs operating across EU borders.
A 'one-stop-shop' mechanism would allow SMEs to handle tax filings and assessments through a single authority in their home country.
The scope of the system is expanded to include up to two subsidiaries in addition to permanent establishments.
Eligibility for the system is based on specific turnover and tax residency requirements.

Vote

PPE

S&D

Renew

Verts/ALE

ECR

ID

NI

The Left

Total

Documents (PDFs)

DRAFT REPORT on the proposal for a Council directive establishing a Head Office Tax system for micro, small and medium sized enterprises, and amending Directive 2011/16/EU REPORT on the proposal for a Council directive establishing a Head Office Tax system for micro, small and medium sized enterprises, and amending Directive 2011/16/EU Establishing a Head Office Tax system for micro, small and medium sized enterprises, and amending Directive 2011/16/EU

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