The Party of European Socialists (PES) welcomes the announcement by Commissioner for Economy Paolo Gentiloni of proposals for an ambitious reform of corporate taxation in the EU.
These proposals constitute an important step towards reducing compliance costs for SMEs while realising of a fairer tax system in the EU, whereby multinationals contribute to funding public goods and welfare states by paying tax where value is created.
Stefan Löfven, PES President, said:
“The tide is turning in the fight for tax justice, in the EU and beyond. The need for investment and the challenges facing public finances are unprecedented, from pandemic recovery and support to Ukraine, to the green transition and the cost-of-living crisis.
“With these common rules on the taxable base, the EU will be leading by example. Together with the OECD/G20 minimum tax deal spearheaded by Olaf Scholz and Paolo Gentiloni, BEFIT will strengthen the foundations of the Single Market and our Social Europe.”
“Business in Europe: Framework for Income Taxation” (BEFIT) will establish a common set of rules for large multinationals operating in the EU to calculate their taxable base. This will reduce compliance costs and administrative burden, and close loopholes that create unfair distortions within the Single Market. The package presented today also includes a specific tax initiative for SMEs to boost their cross-border activities and reduce their tax compliance costs.
The PES has long supported efforts to coordinate corporate income tax calculation methods within the EU, including the original common consolidated corporate tax base (CCCTB) proposals from 2011, relaunched in 2015.
