Friday, 26 May 2017

Senate backs EU joint tax base for multinationals

ČTK |
10 March 2017

Prague, March 9 (CTK) - The Senate supported the European Commission's efforts to establish a joint taxable income for corporate tax provided this only relates to large multinational companies with incomes over 750 million euros.

The senators argued that the sphere of direct taxes is within the powers of individual EU countries.

Neverthless, they appreciated the efforts to create unified rules and to limit the transfer of profits within the EU.

This is why they supported the introduction of the rules guaranteeing that corporate profits will be taxed in the place where they occurred.

Last October, the European Commission unveiled its proposal of a joint, consolidated taxable income for legal entities.

The base is to provide unified rules for the calculation of taxable profits for the companies within the EU.

The companies will be able to compensate the profits in one country by losses in another country. The disharmony in the systems of the individual countries will also disappear.

The EC hopes that the total investments in the EU will increase by up to 3.4 percent.

The upper house also approved an annex to the European Landscape Convention that follows the aim of sustainable landscape development, based on balanced, harmonious relations between social needs, the economy and environment conservation and creation.

Thanks to the annex, non-European countries can join the convention.

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