Business in Europe: Framework for Income Taxation (BEFIT)

The European Commission has recently launched a call for evidence related to a new legislative initiative called Business in Europe: Framework for Income Taxation (“BEFIT”).

This initiative aims to introduce a common set of rules for EU companies to calculate their taxable base while ensuring a more effective allocation of profits between EU countries.

BEFIT’s key objectives are:

1. to increase businesses’ resilience by reducing the complexity of tax rules and the compliance costs faced by EU businesses operating across borders;
2. to remove obstacles to cross-border investment and make the single market a more attractive location for international investment;
3. to create an environment conducive to fair and sustainable growth by paving the way for administrative simplification; and
4. to provide sustainable tax revenue.

An impact assessment is being also prepared to feed into the work on this initiative and the Commission’s subsequent decisions.

In parallel, a public consultation has been launched, in order to collect the views of stakeholders on the key principles that define the features of a common corporate tax base in the EU.

If you have an interest in this initiative, the public consultation is opened for feedback as from 13 October 2022 until 26 January 2023 : Public consultation for BEFIT.