Both aspects would ensure close alignment of BEFIT’s scope with the scope of the proposed Pillar Two directive.Ī broader scope would involve lowering the revenue threshold below EUR 750 million-making the legal framework more inclusive. Under this option, the threshold for a group of companies to fall under BEFIT would be set at EUR 750 million of consolidated annual global revenues and the definition of “a group of companies” would be aligned with the definition used in the proposal for an EU directive on Pillar Two. Option 1: Groups with consolidated global revenues of at least EUR 750 million The range of policy options would include the five key elements of the BEFIT system. EU action-improve the current legislation by means of a directive: EU action in the form of a directive would provide the key features of a common tax base together with an allocation of profits to member states based on a formula.Status quo scenario-no action at the EU level: The baseline scenario used as a benchmark assumes that the current national rules on corporate taxation would remain unchanged, maintaining the current lack of a common corporate tax system in the single market.To ensure cost-efficiency, the proposal is meant to be consistent with, and where possible build on, the principles that underlie the OECD’s two-pillar approach.Ī non-exhaustive list of policy options are provided by the call for evidence: Provide sustainable tax revenue, which is particularly important in the current challenging economic climate. Create an environment conducive to fair and sustainable growth by paving the way for administrative simplification and.
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