What businesses should know about Europe’s CCCTB by Andreas Eggert in International Tax Review

The European Commission announced its directive proposal for a common consolidated corporate tax base (CCCTB) more than three and a half years ago, on March 16 2011. Andreas Eggert discusses how the proposal has developed since then.
The CCCTB would introduce a single set of rules for the calculation of the corporate tax base within the EU. As well as this, the tax bases of all EU members of a corporate group would be consolidated and subject to formulary apportionment. Member states would retain the right to set the tax rates. The regime would be optional, but the option would be binding on the entire corporate group for five years. The aim of the CCCTB is to promote the Single Market through increased tax-efficiency most notably by reducing tax compliance costs for businesses that operate in several EU member states, as well as enabling small and medium-sized enterprises to expand their business into other EU states. It should also increase tax transparency and ensure fair tax competition that is limited to the tax rates….