Council and European Council documents are made available through the public register, in accordance with EU rules on transparency. To get more information about these cookies, how and why we use them and how you can change your settings, check our cookies policy page. Provisions against corporate tax avoidance (profit-shifting). Aggressive tax planning practices, which are most often employed by large multinational companies, have a particularly negative impact on the competitive position of small and medium-sized enterprises, as they cannot afford the high cost of consulting fees related to such tax solutions. The corporate reform package proposal published on 25th October, 2016 provides three new proposals to provide for a more modern and fairer tax system for business , to close loopholes between EU countries and non-EU countries and to provide new dispute resolution rules to relieve problems with double taxation for buinesses. The Council of the EU and the European Council work on a wide range of issues affecting the interests of the EU and its citizens. The press office is the first point of contact for all media requests. The CCCTB contains robust anti-abuse measures, to defend Member States against base erosion and profit shifting to non-EU countries. The draft CCCTB directive sets out technical rules for the consolidation of profits and the apportionment of the consolidated base to the eligible member states.The CCCTB initiative, however, does not aim to harmonise tax rates or possible tax credits in the EU - these issues are outside the scope of the proposals scope. The Council of the EU is the institution representing the member states' governments. The Council held an orientation debate on the CCTB proposal with the aim of establishing the right balance between two needs: the need to harmonise the rules across the EU and the need to maintain the right level of flexibility in their application. It will encourage business and investment, by offering companies solid and predictable rules, a fair and level-playing field, and reduced costs and administration. The re-launched CCCTB system will be mandatory for large groups, to cover those with the greatest capacity to tax plan. The headquarters of the Council of the EU and the European Council are located in Brussels (Belgium). The CCCTB can lift investment in the EU by 3.4% and growth by up to 1.2%. This is a single set of rules which companies operating within the EU could opt to use to calculate their taxable profi ts. The Council will work on the directive establishing common consolidated corporate tax base (CCCTB) once the work on the directive establishing a common corporate tax base has advanced sufficiently, creating a gap in time during which the taxpayers will temporarily be unable to use the benefits of tax consolidation. It will remove the need for transfer pricing, which is a primary route for profit shifting. Press officers speak 'off the record' about the Council's activities. It will incentivise R&D spending, which is crucial for growth, with a super-deduction. The system will remain optional for those not captured by the mandatory scope. With your permission, we will use AT internet cookies to produce aggregated, anonymous data about our visitors' browsing and behaviour on our website. The proposed rules would be mandatory for groups of companies with a consolidated turnover exceeding €750 million during the financial year and which are: Smaller companies and start-ups whose turnovers are below this threshold would also be able to participate in this system. The CCCTB will provide companies with legal certainty and reduce tax obstacles, by providing a single, stable, transparent corporate tax system for the EU. This is particularly important for small and start-up companies. The proposal was therefore reworked by the European Commission and split into two directives: a directive establishing a common corporate tax base (CCTB), and a directive on a common consolidated corporate tax base (CCCTB). The Council of the EU meets in different configurations depending on the topic discussed. Companies can file one tax return for all of their EU activities, and offset losses in one Member State against profits in another. The CCCTB will encourage stable financing. This rule would remain in force until the introduction of the CCCTB, which aims to make cross-border loss relief automatic. The CCCTB will be implemented in two steps. A special tax deduction would be available to companies that chose to increase their equity for financing their activities rather than taking on new debt. Certain cookies are used to obtain aggregated statistics about website visits to help us constantly improve the site and better serve your needs. a common system for calculating the tax base of businesses operating in the EU: the Common Consolidated Corporate Tax Base (CCCTB). We use cookies in order to ensure that you can get the best browsing experience possible on the Council website. Other cookies are used to boost performance and guarantee security of the website. Also known informally as the EU Council, it is where national ministers from each EU country meet to adopt laws and coordinate policies. Please take a few minutes to complete our short survey at the end of your visit. In July 2013 EU ministers agreed that the establishment of the common corporate tax base should precede its consolidation. Deciding corporate tax rates is a sovereign right of member states. Could offer to Member States to agree in one Member State against losses in another rules also. 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