Economic and Financial Affairs Council, 23/05/2017, 23 May 2017

Main results

Double taxation - Dispute resolution

The Council agreed on a new system for resolving double taxation disputes between member states.

The proposal sets out to improve the mechanisms used when disputes arise from the interpretation of agreements on the elimination of double taxation.

"This directive is an important part of our plan for strengthening tax certainty and improving the business environment in Europe", said Edward Scicluna, minister for finance of Malta, which currently holds the Council presidency.

The draft directive requires dispute resolution mechanisms to be mandatory and binding, with clear time limits and an obligation to reach results. It will thereby enhance tax certainty and the environment in which businesses operate.

Common corporate tax base

The Council discussed a proposal for a common corporate tax base (CCTB) in the EU, aimed at reducing the administrative burden of multinational companies.

The text revamps a 2011 proposal that was withdrawn and replaced by proposals for a two-step corporate tax reform.

It establishes a single rulebook for calculating companies' corporate tax liability.

The presidency confirmed its intention to continue discussions on new elements of the proposal, and that an appropriate degree of flexibility should be provided for. A separate proposal on tax consolidation (CCCTB) will be considered without delay once the CCTB rulebook has been agreed.