Corporate tax avoidance: Council agrees its position on hybrid mismatches

21 February 2017

The Council agreed its position on rules aimed at closing down 'hybrid mismatches' with the tax systems of third countries. The directive will contribute to implementation of 2015 OECD recommendations addressing corporate tax base erosion and profit shifting.

The proposal addresses hybrid mismatches with regard to non-EU countries, given that intra-EU disparities are already covered by the 'anti-tax-avoidance directive' adopted in July 2016. It complements and amends that directive accordingly.

The Council reached a compromise on the following issues:


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