The Commission welcomes today’s agreement by EU Finance Ministers to strengthen the Code of Conduct on Business Taxation. The Code of Conduct is an important tool for tackling unfair tax competition, within the EU and beyond. However, in recent years, it has failed to keep up with new and innovative forms of tax competition, which can deplete much needed public revenues and disrupt the level playing field for businesses.
The measures agreed today, which are the first reform of the Code of Conduct since 1997, were proposed by the Commission in the 2020 Tax Action Plan. Member States will be prevented from introducing general features into their tax systems that could have harmful effects from a tax perspective. This includes measures that could result in double non-taxation or the double use of tax benefits.
Member States have also committed to work on further improvements, including more transparency around the Code of Conduct and the group that manages it.
Details
- Publication date
- 8 November 2022
- Author
- Directorate-General for Taxation and Customs Union