Business in Europe: Framework for Income Taxation (BEFIT)

Tabled by Manon Aubry, Pasquale Tridico

Added: (1 b) In 2016, the Commission tabled an altered 'rebooted' proposal for a common corporate tax base (CCCTB). A common European corporate tax base would serve as a single rulebook on how companies should calculate their overall profit in the Union. After calculating a common tax base, a company active in more than one Member State could add up all the profits and losses of its entities in the different Member States to work out its total net profit or loss for the entire Union (consolidation). The company's taxable profits would then be allocated between the respective company entities, using an apportionment formula (formulary apportionment), with the profits being divided on the basis of three equally weighted factors (labour, tangible assets and sales). Each Member State would then tax the allocated shares of the company's profits at its own national corporate tax rate. The 2016 CCCTB proposal eventually met the same fate as its 2011 predecessor. The Council was not able to reach unanimous support and while the Council had initially paused negotiations to provide room for the OECD/G20 Inclusive Framework's reform of corporate tax rules, the 2016 CCCTB proposal was withdrawn in September 2023.

Wording as published by the EP, in English. PE778.803