European Commission proposes new, ambitious business tax agenda

It sets out both a long-term and short-term vision to support Europe’s recovery from the COVID-19 pandemic and to ensure adequate public revenues over the coming years. It aims to create an equitable and stable business environment, which can boost sustainable and job-rich growth in the EU and increase our open strategic autonomy. The Communication takes account of the progress made in the G20/OECD discussions on global tax reform.

The Commission will present by 2023 a new framework for business taxation in the EU (the new BEFIT), which will reduce administrative burdens, remove tax obstacles and create a more business-friendly environment in the Single Market. Today’s Communication also defines a tax agenda for the next two years, with measures that promote productive investment and entrepreneurship, better safeguard national revenues, and support the green and digital transitions. The Commission also adopted today a Recommendation on the domestic treatment of losses. The Recommendation prompts Member States to allow loss carry-back for businesses to at least the previous fiscal year.

Today’s Communication is part of a wider EU tax reform agenda for the coming years.

Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said:

Taxation needs to keep up to speed with our evolving economies and priorities. Our tax rules should support an inclusive recovery, be transparent and close the door on tax avoidance. They should also be efficient for businesses big and small. Today's Communication will set the foundations for a corporate tax system in Europe that is fit for the 21st century, helping us to build a fairer and more sustainable society.