CCCTB relaunched

Plans to overhaul the way companies are taxed in the single market have been announced by the European Commission.

Recalibrated as part of a broader package of corporate tax reforms the common consolidated corporate tax base (CCCTB) will be mandatory for large multinational groups and will ensure that companies with global revenues exceeding €750m a year will be taxed where they make their profits. Corporation tax rates remain an area of national sovereignty.

The commission claims the CCCTB will improve the single market for businesses because companies will be using a single set of rules and work with their domestic tax administration to file one tax return for all of their EU activities.

It estimates that as a result time spent on annual compliance activities should decrease by 8% while that spent setting up a subsidiary would decrease by up to 67%.

Companies will be able to...