On 18 May 2021, European Commission published a communication to the European Parliament and the Council. It is “Business Taxation for the 21st Century.”
The aim of the tax reform is to sync the tax system with the current digital international business realities. Thus, the communication proposes a single corporate tax rulebook for the whole EU. And some measures to make tax compliance easier. The individual member state still controls the exact tax rate.
Also, the EU will discuss the feasibility of introducing the digital levy. There is a proposal on increasing environmental taxes’ significance as well.
The exact implementation methods and time remain uncertain. The OECD/G20 negotiation on the Pillar 1 and Pillar 2 blueprint will affect the progress of this reform.
Thank you to our BLCC corporate member Loyens Loeff for providing the information. Click here for more detail from them. On the EU announcement, click here. The exact communication document is here.