EU executive says ‘taxation omnibus’ will save companies €8 billion per year
The European Commission has proposed numerous changes to the EU’s taxation rules, in what Brussels described as its most sweeping attempt so far to slash red tape.
The so-called taxation “omnibus” – which would amend multiple EU directives – includes proposals to eliminate all withholding tax payments for firms shifting money between subsidiaries within the EU, harmonise EU and global corporate tax rules, and boost research and development (R&D) investment by allowing companies to immediately expense tangible assets used for R&D.
It comes as part of a broader push by the EU to “simplify” companies’ regulatory burden – including for green, digital, and agriculture rules – as Brussels strives to boost its investment climate and catch up with China and the US.
“Europe needs simpler rules to deliver better results,” said Valdis Dombrovskis, EU commissioner for economy, adding that the measures “will radically improve clarity and legal certainty for businesses and tax administrations”.
