An analysis by ATOZ Tax Advisers, Taxand Luxembourg
On 12 September 2023, the EU Commission adopted the Directive Proposal on Business in Europe: Framework for Income Taxation (BEFIT), which aims to establish common tax rules for EU companies, ensuring fair profit allocation between EU countries. BEFIT is mandatory for EU companies in specific groups with significant revenues and replaces a previous EU proposal for a common corporate tax base.
The proposal has faced criticism for its complexity, potential loss of national sovereignty, legal uncertainty, and unintentional business incentives. Its adoption would require unanimity among EU Member States and could enter into force in July 2028, but its success remains uncertain.
Tax Partner Oliver R. Hoor and Chief Knowledge Officer Marie Bentley of ATOZ Tax Advisers, our Luxembourg firm, analyse the Directive Proposal on BEFIT and comment on its implications in more detail here.
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