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EU Vice-President Valdis Dombrovskis has said there is a broad consensus among European finance ministers on the principle of greater tax harmonization, and that talks will continue on the proposed common corporate tax base (CCTB).
At a May 23 ECOFIN meeting, ministers discussed the Commission's proposal for a CCTB in the EU.
The Commission intends first to introduce harmonized rules on the calculation of a company's tax base in all member states. After that, tax revenues would be collected and distributed among member states under a formulary apportionment approach, whereby revenues would be allocated based on factors such as turnover, sales, and employment levels.
The proposal was published in October 2016, following the collapse of talks on the Commission's original scheme for a common consolidated corporate tax base (CCCTB).
According to an ECOFIN press release, the Council presidency (currently held by Malta) "confirmed its intention to continue discussions on new elements of the proposal, and that an appropriate degree of flexibility should be provided for."
The Council will consider the separate proposal for a CCCTB (phase two of the Commission's current plan) once the CCTB rulebook has been agreed.
Speaking after the meeting, Dombrovskis commented: "We note the wish of some member states to have broader flexibility and are ready to carry on the discussion. At the same time, we need to keep our eyes on the overall goal of greater harmonization and the simplification that consolidation offers."
"There was a broad consensus on this general principle today, but obviously more work is needed to be done in the months to come, in order to reach an agreement."
At a May 23 ECOFIN meeting, ministers discussed the Commission's proposal for a CCTB in the EU.
The Commission intends first to introduce harmonized rules on the calculation of a company's tax base in all member states. After that, tax revenues would be collected and distributed among member states under a formulary apportionment approach, whereby revenues would be allocated based on factors such as turnover, sales, and employment levels.
The proposal was published in October 2016, following the collapse of talks on the Commission's original scheme for a common consolidated corporate tax base (CCCTB).
According to an ECOFIN press release, the Council presidency (currently held by Malta) "confirmed its intention to continue discussions on new elements of the proposal, and that an appropriate degree of flexibility should be provided for."
The Council will consider the separate proposal for a CCCTB (phase two of the Commission's current plan) once the CCTB rulebook has been agreed.
Speaking after the meeting, Dombrovskis commented: "We note the wish of some member states to have broader flexibility and are ready to carry on the discussion. At the same time, we need to keep our eyes on the overall goal of greater harmonization and the simplification that consolidation offers."
"There was a broad consensus on this general principle today, but obviously more work is needed to be done in the months to come, in order to reach an agreement."