Published on: 18 March 2011
The European Union, this week, has proposed a new system to calculate the tax transnational companies have to pay on their profits that it says may save businesses billions of euros on taxes and paperwork.
The Common Consolidated Corporate Tax Base is a single set of rules that companies operating within the EU could use to calculate their taxable profits. In other words, a company or qualifying group of companies would have to comply with just one EU system for computing its taxable income, rather than different rules in each Member State in which they operate.
The Dutch Underminister of Finance, responsible for tax matters, favoured an open discussion on the issue. Dutch parliament so far has been reluctant for any (further) tax harmonisation as this will lead to a shift of autonomy to the EU.