On the website of the European Council/Council of the European Union a Proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) and Explanatory Notes have been released to the public.
On December 7, 2015 we already reported on the ECOFIN meeting that would take place on December 8, 2015. In this article we included links to the documents for this meeting that were available on the website of the European Council/Council of the European Union. At that time on the website of the European Council/Council of the European Union a link to a Proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) was shown. However when clicking on the link one was told that the document was not available for the public. Now however it became available to the public and so did the relating Explanatory Notes.
The Proposal for a Council Directive is relatively short and contains only 21 Articles. The document, dated December 2, 2015, describes the Proposal for a Council Directive as a new version of the Presidency consolidated text of a possible split from the CCCTB proposal related to the international anti-BEPS aspects.
The Proposal for a Council Directive as published on the website of the European Council/Council of the European Union contains a.o. articles that contain provisions with respect to the following subjects:
· Scope (article 1)
· De minimis application (Article 2)
· Eligible corporate entities (Article 3)
· Definitions (article 4)
o taxpayer
o person
o permanent establishment
o a person 'associated' to a taxpayer
o a person 'closely related' to a taxpayer
o borrowing costs
o exceeding borrowing costs
o EBITDA
o financial institutions
o insurance undertakings
o market value
o transparent entity
o hybrid entity
o hybrid permanent establishment
o mismatch situation
o double deduction
o deduction without inclusion
o non-taxation without inclusion
· General anti-abuse rule (Article 5)
· Artificial avoidance of permanent establishment status (Article 6)
· Interest limitation rule (Article 7)
· Switch-over clause (article 8)
· Controlled foreign companies (Article 9)
· Exit taxation (Article 10)
· Rules for determining the treatment of hybrid mismatches for tax purposes between Member States (Article 11)
· Rules for determining the treatment of hybrid mismatches for tax purposes in cases involving third countries (Article 12)
Just as the Proposal for a Directive is relatively short, the same can be said with respect to the Explanatory Notes. The reason herefor is that the Explanatory Notes explain the background behind the Presidency consolidated text of a possible split from the CCCTB proposal related to the international anti-BEPS aspects and the changes inserted compared to previous versions of the articles discussed in past Working Party on Tax Questions meetings.
Click here to be forwarded to the Proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB), dated December 2, 2015, as available on the website of the European Council/Council of the European Union, which will open in a new window.
Click here to be forwarded to the Explanatory Notes, dated December 2, 2015, as available on the website of the European Council/Council of the European Union, which will open in a new window.
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