Quick Links  


  You are here >   Tax Policy and Practice > Revenue Practice and Representations > EU and International Tax Policy > EU Action Plan

EU Action Plan for a Fair and Efficient Corporate Tax System



On 17 June 2015, the Commission published an Action Plan “A Fair and Efficient Corporate Tax System in the European Union: 5 Key Areas for Action”,  to fundamentally reform corporate taxation in the EU. The Action Plan sets out a series of initiatives to tackle tax avoidance, secure sustainable revenues and strengthen the Single Market for businesses.  This replaces this Commission’s  “Action Plan to  strengthen the fight against tax fraud and tax evasion” which was issued in 2012.

On the release of the Action Plan, Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "Corporate taxation in the EU needs radical reform. In the interests of growth, competitiveness and fairness, Member States need to pull together and everyone must pay their fair share. The Commission has today laid the foundation for a new approach to corporate taxation in the EU. Member States must now build on it."


The plan identifies 5 key areas for action:

1. Re-launching the Common Consolidated Corporate Tax Base (CCCTB)
As part of the release of the Action Plan, the Commission relaunched proposals for a CCCTB as a tool against aggressive tax planning. The Commission opened a public consultation on this in October and the Institute has  made a submission which highlights our concerns on the proposal. View our submission and read more about CCCTB on our dedicated webpage - View here.

2. Ensuring fair taxation where profits are generated
In parallel with the OECD project on Base Erosion and Profit Shifting (“BEPS”), the European Commission is also working on its own anti-BEPS Directive. We expect a draft Directive to be issued in late January 2016.   Read more about BEPS on our dedicated webpage - View here. 

3. Creating a better business environment
The Commission is seeking greater coordination between Member States on tax policy, along with measures to reduce the administrative burden and compliance costs. The CCCTB is central to this, as are changes to existing Transfer Pricing and Permanent Establishment rules. There will also be a focus on improving tax dispute resolution.   

4. Increasing transparency
In March 2015, the Commission launched a Tax Transparency Package to improve information sharing amongst member states.  In October, Member States agreed to adopt the Commission’s proposals on the automatic exchange of information on cross-border tax rulings (“DAC 3”). The Commission is also considering public Country-by-Country reporting and will be releasing an impact statement on same in early 2016.

5. Improving EU coordination

The Commission will launch a discussion with Member States to determine how a more strategic approach to controlling and auditing cross-border companies can be taken forward. It also proposes to reform the Code of Conduct for Business Taxation and the Platform on Tax Good Governance. 

Links and Publications

2015 Action Plan for a Fair and Efficient Corporate Tax System in the European Union -  View here     

Timeline for implementation of Action Plan - View here 

Tax Transparency Package - View here 

2012  Action Plan to strengthen the fight against tax fraud and tax evasion - View here