Lonzo Nut Blog

On November 25, 2015, the European Parliament (EP) approved a resolution to make corporate taxes “fairer across Europe”. The resolution calls on EU member states to “agree on mandatory country-by-country reporting by multinationals of profits and taxes, a common consolidated corporate tax base (CCCTB), common definitions for tax terms, and more transparency and accountability with regard to their national tax rulings for companies”, a press release issued by the EP said.

If the EP resolution (as it stands) is passed into law by the European Council it would result in the following:

• Large multinational corporations would have to pay taxes in the countries where most of their financial activities and profits are made
• Smaller EU economies that offer more competitive corporate tax rates with fewer regulations would stand to lose significant tax revenues as multinationals migrate out of their jurisdictions
• Jurisdictions outside of the EU would attract multinationals with more favorable tax and regulatory schemes

A Comparison of EU VAT Tax Rates as of 1 January 2015:

Sources: the Malta Independent and the European Parliamentary Research Service

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