ARTICLE · 14 FEBRUARY 2024

BEFIT, Towards A Common Corporate Tax Framework In The EU ?

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BEFIT stands for "Business in Europe: Framework for Income Taxation" and is the object of a draft EU directive proposed by the European Commission on 12 September 2023.

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Maxime Grosjean

BEFIT stands for "Business in Europe: Framework for Income Taxation" and is the object of a draft EU directive proposed by the European Commission on 12 September 2023 (the "Draft Directive"). The stated aim of the Draft Directive is to reduce the tax compliance costs of large groups by proposing a unified and streamlined approach in the determination of the tax base of their EU companies.

The Draft Directive is based on the observation by the Commission that large groups operating in the EU face a competitive disadvantage linked to the complexity of navigating in the national tax systems of each single EU country in which they operate. This complexity creates tax compliance costs that can discourage cross-border investments within the EU.

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