Tax Deals

Fleshing Out a Tax Minimum

Taxing a cup of coffee. Starbucks is one of many companies that have benefited from tax deals with smaller E.U. nations.
  • Why it matters

    Why it matters

    The Commission’s plans, if implemented, could significantly raise the tax bill of multinational companies operating in the European Union.

  • Facts


    • The European Commission’s plan would require that the effective taxes paid by a company not fall below a certain level.
    • Ideas include setting the minimum at 50 percent of a country’s nominal corporate tax rate.
    • Many companies have refused to appear before a European Parliament special committee set up to examine tax benefits that certain E.U. countries provide to corporations.
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The European Commission in Brussels is sticking to a plan to force the European Union’s 28 members to introduce a minimum tax on businesses operating within their borders, Handelsblatt has learned.

The plans by the E.U.’s executive arm, while still vague, have been moved forward this week despite widespread opposition from a number of smaller E.U. countries that have long relied on tax deals with multinational companies to attract them to their shores. Handelsblatt first reported the plans on Tuesday.

The Commission’s goal is that effective taxes paid by a company should not fall below a certain level in the future, a senior European Union official told Handelsblatt, noting that this is why a minimum threshold value needs to be defined.

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