Deciding corporate tax rates is a sovereign right of member states. The CCCTB will provide companies with legal certainty and reduce tax obstacles, by providing a single, stable, transparent corporate tax system for the EU. It consists of the heads of state or government of the member states, together with its President and the President of the Commission. The aim of the CCTB directive is to establish a single set of rules for calculating the corporate tax base in the EU's internal market. The proposals incorporated the Council's suggestions on the previous (2011) proposal to establish the CCCTB, notably the compromise proposal of the Council presidency of November 2014 as well as the Council's work on anti-tax-avoidance measures. his activity, known as 'profit-shifting', is detrimental to a country's budget and contributes to the erosion of its tax bases. The draft CCCTB directive sets out technical rules for the consolidation of profits and the apportionment of the consolidated base to the eligible member states.The CCCTB initiative, however, does not aim to harmonise tax rates or possible tax credits in the EU - these issues are outside the scope of the proposals scope. The press office is the first point of contact for all media requests. It helps organise and ensure the coherence of the Council's work and the implementation of its 18-month programme. Factsheet2016 proposal on Common Tax Base - Annex2016 proposal on Consolidation - Annex. Therefore, the Commission re-enforced the original CCCTB proposal and re-launched it through a more manageable process. We use cookies in order to ensure that you can get the best browsing experience possible on the Council website. The CCCTB will encourage stable financing. It will incentivise R&D spending, which is crucial for growth, with a super-deduction. The proposed rules would be mandatory for groups of companies with a consolidated turnover exceeding €750 million during the financial year and which are: Smaller companies and start-ups whose turnovers are below this threshold would also be able to participate in this system. To get more information about these cookies, how and why we use them and how you can change your settings, check our cookies policy page. You can get in contact to arrange a visit, ask questions about the work of both institutions, and request a document, among other services. Council and European Council documents are made available through the public register, in accordance with EU rules on transparency. The aim is to promote innovation in the EU and help smaller companies develop. Currently businesses in the EU need to comply with the requirements of different national corporate taxation systems, which can be a considerable administrative burden and an obstacle to cross-border investment in the EU. According to the proposed rules, all revenues will be taxable unless expressly exempted. The Council of the EU is the institution representing the member states' governments. The CCCTB directive in essence proposes that consolidated taxable profits of a multinational corporate group be shared between those member states in which the group is active. This would reduce administrative costs and increase legal certainty for businesses by making the calculation of their taxable profits uniform in all EU countries. The re-launched CCCTB system will be mandatory for large groups, to cover those with the greatest capacity to tax plan. According to the proposed mechanism, each member state will then be able to tax its apportioned share of the profit at its own national tax rate. The draft CCTB directive contains an number of provisions against corporate tax avoidance, which include: These rules reflect the rules already agreed by the Council in the anti-tax-avoidance directive (ATAD).
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