Business in Europe: Framework for Income Taxation (BEFIT)

We are pleased to respond on behalf of the Deloitte firms in Europe to the European Commission Public Consultation on the Proposal for a Council Directive on Business in Europe: Framework for Income Taxation (BEFIT or the BEFIT Proposal or the Proposal) presented on 12 September 2023 and welcome the opportunity for debate on this topic.

The European Banking Federation (EBF) welcomes the opportunity to provide additional input on the Commissions proposal for Business in Europe: Framework for Income Taxation (BEFIT). EBF is supportive, in principle, of the idea of comprehensive and uniform European tax regulation, particularly one that aims to address cross-border obstacles in the corporate tax field.

Cooperatives Europe is the European cross-sectoral organisation representing cooperative enterprises as well as the regional office of the International Cooperative Alliance (ICA). On behalf of its 86 member organisations from 34 European countries across all business sectors, it promotes the cooperative business model in Europe.

The VYV Group is a union of mutual societies (Harmonie Mutuelle, MGEN, MNT, Mutuelle Mare-Gaillard, etc.), established in 2017, and the first mutual health and social protection actor in France. All the components of the group and their 46 000 employees protect almost 11 million people and offer tailored solutions to more than 77 000 health and welfare client companies.

Filed in French · English published by the European Commission

PwC International Ltd, on behalf of its network of member firms (PwC), welcomes the opportunity to respond to the EC call for feedback on the Proposal for a Council Directive on Business in Europe: Framework for Income Taxation (BEFIT), published on 12 September 2023. Please see attached our feedback letter.

CFE welcomes the opportunity to contribute its input on the proposed Council Directive: Business in Europe: Framework for Income Taxation (BEFIT). The question that arises is whether there a need for BEFIT and is it in line with the stated legal bases of article 115 of the Treaty on Functioning of the European Union, its subsidiarity and its proportionality.

In the attached report, the Tax Justice Network analyses whether the BEFIT directive proposal of September 2023 delivers on the European Commissions own brief for Business Taxation for the 21st Century. The Comission presented the BEFIT initiative as a plan to provide for a fairer allocation between Member States of taxing rights on the profits made by multinational enterprises active in the EU.

Dear Sir, thank you for the opportunity to share our thoughts in the context of the public consultation on the BEFIT (Business in Europe: Framework for Income Taxation), which concerns the limitation of business income in the European Union (EU). Businesses essentially expect a harmonised European basis for simplification, competitive advantage and legal certainty.

Filed in French · English published by the European Commission

As a statutory umbrella organisation, the Federal Chamber of Tax Consultants represents the totality of over 100.000 tax advisors, tax agents and tax-advising professional companies at national and international level. It coordinates the formation of the opinions of the chambers of tax advisers and, on that basis, participates in the deliberations on tax laws and in the design of professional law.

Filed in German · English published by the European Commission

The European Association of Innovation Consultants (EAIC), comprising a diverse group of professionals at the forefront of fostering innovation, strongly advocates for the inclusion of tax incentives for Research and Development (R&D) within the BEFIT - Business in Europe: Framework for Income Taxation.

KPMG member firms in the European Union are pleased to provide comments on the European Commissions public consultation Business in Europe: Framework for Income Taxation (BEFIT) (the Consultation) on a common corporate tax system in the EU. KPMG welcomes the ECs ambition to simplify compliance requirements, promote tax certainty and reduce risks of double taxation.

The financial sector (Finance Finland; ‘FA’) considers that the proposed BEFIT regulation on the single tax base will, in the long term, increase the administrative burden and costs for groups, rather than reducing them. The FA stresses the need to exclude from the scope of the BEFIT regulation certain operators, such as pension funds and certain investment funds, as are the minimum tax (Pillar 2).

Filed in Finnish · English published by the European Commission

The Italian cooperative movement supports the Commission’s BEFIT proposal to develop a single European corporate tax legislation based on the fundamental profiles of a common tax base. Draws attention, however, to a number of issues concerning cooperatives and other social economy entities, already contained in the previous proposals on the Common Consolidated Corporate Tax Base (CCCTB) (2011 and 2016) in order to…

Filed in Italian · English published by the European Commission

The Italian cooperative movement supports the Commission’s BEFIT proposal to develop a single European corporate tax legislation based on the fundamental profiles of a common tax base. Draws attention, however, to a number of issues concerning cooperatives and other social economy entities, already contained in the previous proposals on the Common Consolidated Corporate Tax Base (CCCTB) (2011 and 2016) in order to…

Filed in Italian · English published by the European Commission

Loyens & Loeff N.V. welcomes the efforts of the European Commission to introduce a common framework for corporate income taxation in European Union thereby trying to simplify tax rules, enhance tax certainty and decrease the compliance and administrative burden for MNE groups and tax authorities.

As Bundesverband Deutscher Leasing-Unternehmen we represent the interests of the German leasing industry. Leasing companies invest more than 70 billion annually in vehicles, machinery, IT equipment, real estate and other durable real assets, thus contributing significantly to the supply of investment goods for their mostly small and medium-sized customers in Germany.

Invest Europe is the worlds largest association of private capital providers. We represent Europes private equity, venture capital and infrastructure investment firms, as well as their investors. Our association has a global presence, with more than 650 members covering 57 countries, where a big part of them works on more than one European market.

CECOP supports the Commission's BEFIT proposal to develop a single European corporate tax law based on the fundamental principles of a common tax base. However, it draws attention to elements that risk leading to unequal treatment of cooperative enterprises: a.

The European Association of Co-operative Banks (EACB) welcomes the opportunity to comment on the European Commissions legislative proposal for a Council Directive on Business in Europe: Framework for income Taxation (BEFIT). The EACB would welcome an actual decrease of compliance burden.

Italian Cooperative Alliance supports the Commission’s BEFIT proposal for a common tax base in the EU, welcoming the fact that BEFIT will reduce regulatory fragmentation between Member States and is in line with the broader debate that has taken place in the OECD and G20 in recent years.

Filed in Italian · English published by the European Commission

The European Public Real Estate Association (EPRA) is pleased to offer feedback on the BEFIT proposal, which is contained in the attached document. EPRA is the voice of Europes listed real estate companies and with more than 290 members (companies, investors, and their suppliers), EPRA represents over 840 billion EUR of real estate assets (European companies only) and 95% of the market capitalisation of the FTSE…

The European Community Shipowners Associations (ECSA) represents 21 national shipowners associations based in the EU and Norway. European shipowners control 39.5% of the global commercial fleet, contribute annually 149 billion euros to the EU GDP and provide 2 million people with careers both on board and ashore.

The French Banking Federation (FBF), in its capacity as a professional organisation representing all banks established in France and comprising 300 member banks of all sizes, French or foreign, appreciates its opportunity to contribute to the European Commission’s work on the draft BEFIT Directive.

Filed in French · English published by the European Commission

Proposal: Council DIRECTIVE on the framework for corporate income taxation in Europe (BEFIT) EK commends the opportunity to provide feedback on the subject matter. EK has serious reservations about the transition to BEFIT. The objectives of the BEFIT framework are good and supportable in themselves.

Filed in Finnish · English published by the European Commission

HP welcomes the initiative aimed at developing common approaches among Member States tax authorities with reference to the interpretation and application of transfer pricing rules. With the hope to help the EC to successfully proceed with this project, HP provided some comments with reference to the following articles: - Article 5 associated enterprises - Article 6 corresponding adjustments - Article 7 compensating…

We are pleased to respond on behalf of the Deloitte firms in Europe to the European Commission Public Consultation on the Proposal for a Council Directive on Transfer Pricing (the TP Proposal) presented on 12 September 2023 and welcome the opportunity for debate on this topic. This letter is submitted to provide background context and comments on the TP Proposal.

As a statutory umbrella organisation, the Federal Chamber of Tax Consultants represents the totality of over 100.000 tax advisors, tax agents and tax-advising professional companies at national and international level. It coordinates the formation of the opinions of the chambers of tax advisers and, on that basis, participates in the deliberations on tax laws and in the design of professional law.

Filed in German · English published by the European Commission

Please find attached comments of Tax Executives Institute, Inc. ("TEI") regarding the proposal for a council directive on transfer pricing. Should you have any questions regarding our comments please reach out to [name removed] of TEI's legal staff at [email removed].

Assonime – Association of Italian joint stock companies – fulfilling the unity to provide comments on the Proposal for a Council Directive on Business in Europe: Framework for Income Taxation (BEFIT) COM (2023) 532 final and on the Proposal for a Council Directive on transfer pricing COM (2023) 529 final. Assonime recognises the importance of the introduction of a common corporate tax system within the EU.

Filed in Italian · English published by the European Commission

Dear Sir/Madam, We welcome the consultation of the European Commission (EC) relating to a proposal for a Council Directive on transfer pricing. Please find hereattached our feedback. As always, we stand ready to further discuss and explain our views. Yours sincerely, Tax Affairs MEDEF

The objectives of the proposed Directive to facilitate dispute resolution and to simplify and harmonise transfer pricing rules are important and welcome. However, EK has reservations that they could be achieved by the means described in the proposal for a directive.

Filed in Finnish · English published by the European Commission

Please find (below and attached) Insurance Europe's feedback on the European Commission's proposal for a Transfer Pricing directive. Insurance Europe shares the goals of the proposed Transfer Pricing (TP) directive.

The French Banking Federation (FBF), in its capacity as a professional organisation representing all banks established in France and comprising 300 member banks of all sizes, French or foreign, appreciates the opportunity offered to it to contribute to the European Commission’s work on the draft Transfer Pricing Directive.

Filed in French · English published by the European Commission

Dear Sir/Madam, We very much welcome the consultation of the European Commission (EC) relating to a proposal for a Council Directive establishing a Head Office Tax system for small and medium-sized enterprises, published on 12 September 2023 and which is part of the SME Relief Package. The Commission assesses that SMEs spend approximately 2.5% of their turnover on compliance with their tax obligations (e.g.

The German Tax Consultants Association (DStV) welcomes the Commission’s proposal to introduce a principal place-based tax system for micro-enterprises, SMEs and amending Directive (2011/16/EU – DAC). Overall, as part of the SME relief package adopted by the European Commission in September 2023, the proposal is an interesting tax option for SMEs.

Filed in German · English published by the European Commission

Invest Europe takes note of the European Commission's proposal for a directive on transfer pricing. However, we may not see an immediate necessity for this directive, given the existing comprehensive guidance provided by the OECD through its Transfer Pricing Guidelines.

Attached is CFE Tax Advisers Europe's Opinion Statement FC 10/2023 on the EU Commission Transfer Pricing Proposal. CFE welcomes the opportunity to contribute through ongoing engagement with the European Commission and European Parliament, in discussions in our role as a Member of the EU expert group, Platform for Tax Good Governance and Aggressive Tax Planning and via the public consultation process.

Attached is CFE Tax Advisers Europe's Opinion Statement FC 9/2023 on the EU Commission Proposal on establishing a Head Office Tax system for micro, small and medium sized enterprises and amending Directive 2011/16/EU.

Technology Industries of Finlands submission to the public consultation: Proposal for a Council Directive establishing a Head Office Tax System for micro, small and medium sized enterprises (HOT) The European Commission (EC) has requested comments regarding the so called HOT-directive proposal.

The Chamber of Tax Consultants (KSW) is the representative body for more than 6300 tax advisers and nearly 2000 auditors and more than 4300 career candidates in Austria. We take the opportunity to present our opinion on the Proposal for a Council Directive establishing a principal place-based taxation system for micro, small and medium-sized enterprises and amending Directive 2011/16/EU (HOT), COM(2023) 528 final…

Filed in German · English published by the European Commission

The Chamber of Tax Consultants (KSW) is the representative body for more than 6300 tax advisers and nearly 2000 auditors and more than 4300 career candidates in Austria. We take the opportunity to present our opinion on the proposal for a Council Directive establishing a framework for business taxation in Europe (BEFIT), COM(2023) 532 final, as follows: The objective of reducing compliance costs for companies (in…

Filed in German · English published by the European Commission

The Chamber of Tax Consultants (KSW) is the representative body for more than 6300 tax advisers and nearly 2000 auditors and more than 4300 career candidates in Austria. We take the opportunity to present our opinion on the proposal for a Council Directive on Transfer Pricing (TP), COM(2023) 529 final, as follows: > Basic: The objective of the TP-Directive is to avoid double taxation, to ensure the uniform…

Filed in German · English published by the European Commission

Please find enclosed the comments by the International Bar Association regarding the Business in Europe: Framework for Income Taxation directive and Transfer Pricing directive. The IBA, the global voice of the legal profession, includes over 80,000 of the worlds top lawyers and 180 Bar Associations and Law Societies worldwide.

This study realised by the IBFD Task Force on EU Law, analyses the critical issues of legal interpretation that might arise from the application of the proposed BEFIT Directive and puts forward possible solutions, focusing on four main areas.

This study, from one of the members of the IBFD Task Force on EU Law, performs a legal assessment of the proposed Directive on Head Office Taxation, and puts forward alternatives to overcome the identified concerns. It is structured around the building blocks of the proposal: (i) scope; (ii) access to the regime; (iii) substantive tax rules; and (iv) procedural tax rules.

The In-House Tax Forum (IHTF) welcomes the opportunity to comment on the three Directives proposed by the Commission forming the Business in Europe: Framework for Income Taxation-package or BEFIT-package. IHTF strongly believes in the European Union Single Market and encourages the Commission to take initiatives to increase the competitiveness of EU businesses and eliminate obstacles to cross-border trade.

The proposal aims to reduce the regulatory burden for both taxpayers and tax administrations. The Federal Chamber of Tax Consultants supports the European Commission’s objectives of reducing the burden on SMEs and reducing compliance costs. In particular, this proposal for a Directive offers considerable potential for simplification for SMEs in scope.

Filed in German · English published by the European Commission

Invest Europe welcomes the European Commission's proposal for a directive establishing a Head Office Tax system for micro, small, and medium-sized enterprises (SMEs) as a significant development that holds the potential to simplify and harmonize tax compliance for qualifying businesses operating across European borders.

As explained in more detail in the attached, fundamental changes to the EU tax system of this magnitude should not be considered prior to assessing the broader context of global tax and economic development. The challenges and uncertainty surrounding the implementation of the Global Minimum Tax Directive, as well as the continued work for the adoption of Pillar One, may hinder the success of the EU marketplace.

Accountancy Europe welcomes any initiative to cut administrative burden and encourage SMEs to engage in cross-border trade. HOT will not significantly reduce the requirements for those SMEs looking to set up branches in other Member States, such as the need to appoint a local advisor or accountant to make appropriate registrations, obtain business licenses etc.

We appreciate the opportunity to submit comments on behalf of EY on the European Commissions call for evidence for an impact assessment of 13 October 2022 on Business in Europe: Framework for Income Taxation (BEFIT).

Assonime – Association of Italian joint stock companies – welcomes the option to provide comments on the initiative Business in Europe: Framework for Income Taxation (BEFIT). Assonime believes that the initiative raises some issues that should be addressed in order to clarify the objective being purified.

Filed in Italian · English published by the European Commission

KPMG member firms in the EU are pleased to provide comments on the European Commissions initiative Business in Europe: Framework for Income Taxation (BEFIT) on a common corporate tax system in the EU. Given that the call for evidence and the public consultation were published simultaneously, our comments - set out in the attached letter, aim to address the issues noted in the inception impact assessment as well as…

Alliance Cooperative Italiane supports the Commission’s BEFIT proposal for a common tax base in the EU, appreciating that BEFIT will reduce regulatory fragmentation between Member States and is in line with the broader debate that has developed in recent years in the OECD and G20.

Filed in Italian · English published by the European Commission

Comments on the European Commission’s Business in Europe: The Framework for Income Taxation (BEFIT) FAR, a trade association in the field of accounting, auditing and advisory services, has been offered the opportunity to comment on the European Commission’s proposal Business in Europe: Framework for Income Taxation (BEFIT). The father wishes to make the following observations in this regard.

Filed in Swedish · English published by the European Commission

Please see the attached file. Technology Industries of Finland (TIF) is of the opinion that although the said goals of BEFIT are highly supportable, BEFIT is not the correct tool, nor is it introduced at the right time. The BEFIT proposal should be postponed and discussed only after the OECD pillars and the EU minimum taxation directive are in place, fully and successfully implemented and operated for several years.

CFE Tax Advisers Europe has issued an Opinion Statement on the European Commission Public Consultation on the Introduction of a New Corporate Taxation System in Europe. The European Commissions plans to overhaul Europes business taxation rules by introducing a single corporate tax rulebook, known as the Business in Europe: Framework for Income Taxation (BEFIT), merits a thorough dialogue with all involved…

Oxfam strongly supports the proposal. We believe it is one of most powerful opportunities to reshape the EUs corporate tax framework, address aggressive tax competition in the EU and raise the ambitions of Pillar 1 and 2. In designing the BEFIT, Oxfam recommends that: - The allocation formula is based on tangible factors (employment, payroll, sales, assets) and excludes intangible assets.

The lack of a common corporate tax system in the EU is a burden for both multinational companies and Member States tax administrations. The existence of different tax systems and a lack of interfaces renders administrative cooperation between Member States difficult. In addition, declarations of cross-border companies are subject to a higher susceptibility to error if they are submitted under different tax systems.

BEFIT represents an important step towards addressing corporate tax disparities across member States more comprehensively and coherently. It also provides a consistent framework for corporate tax compliance that may promote greater transparency and certainty. Therefore, we welcome this initiative by the Commission.

Hearing on Business in Europe: a framework for income taxation (BEFIT) Danske Rederier is a business and employers’ organisation representing the Danish shipping industry, which is one of the largest in the world, contributes to growth and leads towards a more sustainable global shipping industry.

Filed in Danish · English published by the European Commission

Re: European Commission - Call for evidence for an impact assessment on Business in Europe: Framework for Income Taxation (BEFIT) Dear Sir / Madam, The International Bar Association ("IBA") would like to take this opportunity to provide comments as part of the Call for evidence for an impact assessment ("Call for evidence") on Business in Europe: Framework for Income Taxation ("BEFIT"), open for feedback from 13…

Executive Summary CCAB-Is comments on the Business in Europe: Framework for Income Taxation (BEFIT) initiative are summarised below and discussed in detail in the next section of the consultation response: 1. The OECD Two-Pillar Solution is a landmark in international cooperation in taxation matters.

Given the high-level description of the BEFIT proposed rules, it is not yet possible for the business community to assess in depth the concrete potential implications of this proposal. Nevertheless, ICC welcomes the opportunity to provide a first general feedback through this summary and the document attached.

Comment to Question no. 3 An immediate mandatory inclusion of smaller firms into the scope of the Directive is risky because: a) it requires important transition costs (which larger firms can bear more easily) at a time when such rules are still new and probably may doubts as far as their application is concerned exist.

This is a joint statement of UFE (Union of Finance Personnel in Europe) and CESI to reply to the European Commissions consultation on Business in Europe: Towards a framework for income taxation (BEFIT), UFE, the Union of Finance Personnel in Europe, represents the interests of national tax and customs administration unions at the European level, uniting more than 400.000 affiliates from more than 20 European…

We strongly support the Commissions longstanding view that the fairest and most efficient approach to taxation of business profits within the EUs single market is by adopting a common corporate tax base together with formulary apportionment.

Dansk Erhverv is very positive about the Commission’s initiative to introduce a single set of rules for EU companies to calculate their tax base. Dansk Erhverv was a strong supporter of the Commission’s previous proposal on the CCCTB and is convinced that a common consolidated corporate tax base will be the most important tax proposal to ensure an efficient internal market.

Filed in Danish · English published by the European Commission