EU Tax Alert 216

Commission proposes Taxation Omnibus to simplify direct taxation and boost EU competitiveness

(Taxation Omnibus)

On 24 June 2026, the European Commission published the Taxation Omnibus package, proposing amendments to six key EU direct tax directives. The initiative aims to simplify EU tax rules, reduce administrative burdens and enhance EU competitiveness. The proposal updates the Parent-Subsidiary Directive, Interest and Royalties Directive, Tax Merger Directive, Anti-Tax Avoidance Directive, Dispute Resolution Mechanisms Directive and the FASTER Directive, aligning them more closely with recent international developments, including Pillar Two. The proposal is now before the Council. Member States would generally need to implement the changes by 31 December 2028, with