ARTICLE · 04 JANUARY 2024

BEFIT Proposal

ELVINGER HOSS PRUSSEN, société anonyme

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On 12 September 2023, the European Commission proposed the Business in Europe: Framework for Taxation directive, which lays down a new, single set of rules to determine the tax base...

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Elvinger Hoss Prussen

On 12 September 2023, the European Commission proposed the Business in Europe: Framework for Taxation directive, which lays down a new, single set of rules to determine the tax base of groups of companies in the EU ("BEFIT").

BEFIT builds on the OECD/G20 international tax agreement on a global minimum level of taxation, and the Pillar 2 directive¹ adopted at the end of 2022. It replaces the Commission's CCTB (common corporate tax base) and CCCTB (common consolidated corporate tax base) proposals, which have been withdrawn.

The BEFIT initiative is meantto reduce compliance costs for large businesses who operate in more than one Member State and make it easier for national tax authorities to determine which taxes are rightly due by introducing a new, single set of rules to determine the tax base of groups of companies.

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