Roadmap: EU Company Tax, Malta-EU Tax News Bulletin 75

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AML CFT, Company taxation, EU, VAT (Value Added Tax), European Union Commission, double taxation, roadmap, transfer pricing, business taxation-CFE, OECD Pillar 1

EU Commission Publishes Roadmap on Business Taxation for the 21st Century

The EU Commission has published a Roadmap concerning its upcoming Communication on Business Taxation for the 21st Century, which will present the Commission’s plan for reforming EU corporate taxation to be “fit for the realities of the modern global economy”.

The Roadmap identifies issues such as adapting to the challenges of digitalisation, post-COVID economic recovery, an aging population, sustainable green taxation policies and the patchwork of corporate tax systems in the Single Market leading to tax competition as underpinning the strategy that will be unveiled in the Communication.

The Roadmap also states that the Commission will “take stock of the discussion in international fora on reforming the international tax system and present its vision for a way forward to ensure that the EU business taxation system fits the modern economy”.

The Roadmap details that the Communication will contain plans for the short-medium and medium-long term for actions to the taken by the Commission. It is expected the Communication will be published in April.

Declaration on the Future of Europe Conference

The Council of the EU has approved a Declaration on the Conference on the Future of Europe, to be co-signed by the European Parliament and Commission.

Under the Conference on the Future of Europe, the Joint Presidency (comprised of the President of the European Parliament, the President of the Council and the President of the European Commission), will assess “areas where the European Union has the competence to act, or where EU action would benefit European citizens, focusing on topics that truly matter to citizens, with long lasting impacts and wide outreach. The Conference will facilitate a discussion of the challenges the EU is facing, including those brought about by the COVID-19 pandemic. Reflecting the Strategic Agenda of the EU, it should also address policy topics such as climate change, economic and social issues, and the digital transformation.”

The work of the Conference will be commenced by way of a formal event on 9 May, Europe’s Day, in Strasbourg. A Conference plenary session will be held every 6 months to review progress, and conclusions and guidance on the Future of Europe is anticipated in Spring of 2022.

EU Professional Services Regulation Roadmap Published

The European Commission has published a Roadmap concerning a planned Communication which will recommend reform of the EU framework on the regulation of professional services. The Communication will update a recommendation issued by the Commission in 2017 to reform regulation for professional services, in particular for lawyers, accountants, architects, engineers, patent agents, tourist guides and real-estate agents. The new Communication will also extend to cover notaries. The Commission aims to “assist Member States in creating a regulatory environment that is conducive to growth, innovation and job creation”.

According to the Commission, the economic potential that remains unrealised due to excessively restrictive regulation for professional services has been estimated at 85 billion Euros over 2010-2018, and “a well-functioning professional-services sector can be a significant source of economic growth and welfare, and the smooth functioning of this sector will be important for achieving a robust economic recovery from the COVID-19 crisis”.

The new Communication will accordingly update the 2017 recommendations to reflect developments in Member States’ regulatory framework, and encourage reform it sees as necessary, taking into account developments in digitalisation and innovation within individual sectors. No formal public consultation is planned, but competent authorities of the Member States will be consulted.

EU Commission Launches Taxpayers’ Rights Consultation 

The European Commission has launched a public consultation concerning a planned Recommendation to Member States to facilitate the implementation of taxpayers’ rights and simplify tax obligations to ensure better tax compliance.

The Recommendation forms part of the Commission’s Tax Package Action Plan, and aims to improve awareness of taxpayers’ rights throughout the EU. The Recommendation will discuss how Member States may improve their tax administration procedures to better respect and make more effective taxpayers’ rights. The projects will also examine how Member States can improve the relationship between taxpayers’ and tax administrations.

Input can be provided on the Roadmap via the Have Your Say portal until 2 June 2021.

EESC Opinion on EU’s Package for Fair & Simple Taxation

The European Economic & Social Committee has adopted an opinion concerning the EU Commission’s Package for Fair & Simple Taxation.

The EESC “broadly supports the Commission’s legislative proposals and praises their coordination with the global discussions carried out at the OECD/Inclusive Framework level in order to achieve a global consensus. The Committee agrees with the Commission’s approach that good tax governance, the basis for fair taxation, requires tax transparency through the exchange of information between tax authorities, fair tax competition, the absence of harmful tax measures, more efficient tax measures and the implementation of internationally agreed rules. Furthermore, the Committee believes that an effective monetary union requires a coherent fiscal policy and consistency between the fiscal rules of its members.”

The full opinion and further information are available here.

EU Political Agreement Reached on 1 Billion Euro Customs Control System 

Last week the EU Parliament and EU Member States reached provisional political agreement on approving the Customs Control Equipment Instrument for 2021 – 2027, making over 1 billion Euros available for ‘state of the art’ customs control equipment and processes aimed at identifying weak points at EU borders and reducing evasion of EU taxes and customs.

The Customs Control Equipment Instrument forms part of the Commission’s Customs Action Plan. Commissioner for the Economy, Paolo Gentiloni, said of the agreement: “As our societies and economies evolve, customs authorities are facing new challenges such as the huge increases in international trade volumes, heightened risks of fraud and a growing number of imports of dangerous goods. Once up and running, the €1 billion package agreed today will support Member States with cutting-edge tools to help front-line customs officials deal efficiently with these challenges to our Customs Union.”

VAT: One Stop Shop Guide

The EU Commission has published a Guide to the One Stop Shop – the extended reporting platform which replaces the Mini One Stop Shop (MOSS) with effect from 1 July 2021.

The Guide can be viewed here.


Source: Malta Institute of Taxation Click here and CFE Tax Advisors Europe Click Here

Please contact David Marinelli should you wish to discuss any matter relating to your Malta registered company.