The European Tax Man is coming (or is he)
The much published proposal for a CCCTB (Common Consolidated Corporate Tax Base) was issued on March 16th by the European Commission.
The proposal is very detailed and represents an entirely new regime for the calculation of, payment of and filing for Corporation Tax.
The current proposals are as follows:
- Member states will continue to decide their own corporate tax rates, as is their sovereign right
- The CCCTB would be optional for companies. However if they opt in they must do so for five years
- Only eligible companies can participate. Non EU groups can opt in, in relation to European activities
- A single consolidated tax return would be prepared based on a single set of corporate tax rates.
- Profits are consolidated eliminating intra-group transactions. The taxes would be shared among relative members states according to assets, labour and sales in each state
The proposals will be going through member states national parliaments for consideration. It is unlikely that the Irish government will opt in; however individual International companies may do so.
Contact Brian Dignam, Partner OSK for further information.
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