State of play, main conclusions, outlook

In October 2016, the Commission proposed to re-launch the Common Consolidated Corporate Tax Base with a compulsory common tax base as the first step. The aim was to reform corporate taxation in the EU by ensuring that profits are taxed where economic activity takes place and value is created. The two objectives (i.e. anti-tax avoidance and business facilitation) were meant to contribute to a better functioning of the internal market.

In May 2021 (COM(2021)251), the Commission announced that the proposal is to be withdrawn and replaced by a new one known as Business in Europe: Framework for Income Taxation (BEFIT). The Commission intends to adopt this proposal in 2023.