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ARTICLE · 18 SEPTEMBER 2023

Directive Proposal On BEFIT: A Real Necessity Or Just Another Layer Of Useless Complexity?

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On 12 September, the EU Commission adopted a key package of initiatives containing notably a Directive Proposal on Business in Europe: Framework for Income Taxation...

LuxembourgTax
Oliver R. Hoor
Oliver R. Hoor
Marie Bentley
Marie Bentley

On 12 September, the EU Commission adopted a key package of initiatives containing notably a Directive Proposal on Business in Europe: Framework for Income Taxation ("BEFIT"). BEFIT is one of the initiatives announced by the European Commission in its May 2021 communication on Business Taxation for the 21st Century and aims to "introduce a common set of rules for EU companies to calculate their taxable base while ensuring a more effective allocation of profits between EU countries, based on a formula".

The Directive Proposal on BEFIT replaces and thus repeals the EU Commission's proposal for a common corporate tax base ("CCTB") and the proposal for a common consolidated corporate tax base ("CCCTB") that have never reached consensus.

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