the members of the EU will share-they soon the same tax base, It is the fed not the new directive, presented Tuesday, October 25, by the european Commission. Called CCCTB (Common Consolidated Base for Corporate Tax), it includes a series of measures intended to harmonise tax policies within the EU.
The first part, put forward by Brussels, is to set a common tax base. In clear, to ensure that the rules of calculation of the tax base on the companies to be similar between all the members. Taxation would therefore be more easily comparable between different countries even if the latter would remain free to set the rate they want. “An attempt was similar had already been initiated in 2011 but it was unsuccessful in the face of the refusal of the country, remembers Maïr Fereres, audit firm and financial consulting Opsione. This new test allows you to register in a logic of simplification of life of business and try to counter the major groups, which play of the asymmetry existing tax in Europe.”
For the moment, only the groups achieving more than 750 million turnover would be affected, so not really all businesses. The other could be to the long term, if the measurement is validated and generalized.
The rate of IS, a weapon of attraction
The second stage of the rocket, scheduled in a second time – includes a measure even more delicate: the consolidation. It would enable companies operating in several countries will be directed to a single point tax, that of the country where is located its head office.
This large process of harmonization will be there on the day? Nothing is less sure. “The first step of the text has the risk to be rejected by some countries, which might put their veto, details Maïr Fereres. Some fiscal policies are based on exceptions to the tax that the countries would not want to see disappear.”
It is well known that all countries did not display the same tax. If France is on top of the podium with a rate of 33.3%, other countries are well below it, the image of Ireland and its 12.5% interest. “Taxation is a weapon of attractiveness and there are, in all countries, a downward trend continues Maïr Fereres. Certainly, Germany does not seem very far to France with about 30% tax on the companies, but the three points are, in fact, a real difference for businesses.” The French government has proposed in the Budget for 2017 in the trajectory of decline of the corporate income tax by 2020.
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Recently, Theresa May, the First british minister has threatened to substantially lower the tax rate on corporations to 10% (it is currently at 20% and could go down to 17% next year) if Europe says no to the passport financial future negotiations of the Brexit. A formidable weapon, so, which can enable a country to draw its pin from the game…