European Commission and Directorate-General for Taxation and Customs Union 25 October 2016, Proposal for a COUNCIL DIRECTIVE on a Common Consolidated Corporate Tax Base (CCCTB)

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The proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) aims to create a unified corporate tax framework across the EU, addressing the challenges posed by divergent national tax systems that facilitate aggressive tax planning and distort the internal market. Key provisions include a formulary apportionment method for allocating tax bases, mandatory compliance for larger corporate groups, and the option for smaller entities to participate, all designed to enhance fairness and efficiency in corporate taxation. The CCCTB is positioned as a crucial tool for promoting sustainable growth and investment while ensuring that corporate profits are taxed where value is created, thereby mitigating issues of double taxation and non-taxation.AI