27 May 2015

European Commission prepares an Action Plan for fairer and more growth-friendly tax systems in Europe

It has been agreed that a new EU approach to corporate taxation is needed to successfully address tax abuse, ensure sustainable revenues and foster a better business environment in the internal market.

Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, said: "We want corporate taxation to be fair and growth-friendly. Every company, big or small, must pay its share of tax at the place where it makes its profits. Corporate taxation is a Member State responsibility, but the EU must set a clear and renewed framework for fair and competitive corporate taxation."

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "Our current approach to corporate taxation no longer fits today's reality. We are using outdated tools and unilateral measures to respond to the challenges of a digitalised, globalised economy. For fairer taxation and less fragmentation in the Single Market, we need to fundamentally review our corporate tax framework in the EU. Big, small and medium sized companies should be able to benefit from the internal market on an equal footing."

President Jean-Claude Juncker has made the fight against tax evasion and avoidance a top political priority of this Commission. The key objective is to ensure that companies are taxed where their profits are generated and cannot avoid paying their fair share of tax through aggressive tax planning.

An important first step was taken in March 2015 when the Commission presented a package of measures to boost tax transparency in the EU.

Today, the College agreed to take a more comprehensive approach to improve corporate taxation in the EU, also taking into account ongoing international reforms in this field. Today's orientation debate will feed into an Action Plan in June, which will include a strategy to re-launch the works on the introduction at the level of the EU of a Common Consolidated Corporate Tax Base (CCCTB), to implement measures against tax avoidance which are being developed at international level within the OECD, and to further strengthen tax transparency while taking into account the necessity to reinforce the efficiency of the tax environment for businesses in the internal market.

Full press release

© European Commission