Brussels, 2 May 2007
"I am very pleased with the work already achieved and thank the Member State experts for their active participation and input. We are now entering the crucial phase where technical fine tuning and strong political support are needed", László Kovács, the Commissioner for taxation and customs union, said. "I know this project is an ambitious one and has raised some scepticism from certain Member States and questions that are to be answered. I expect all the stakeholders in favour of the project to advocate the CCCTB as the solution to eliminate existing fiscal obstacles throughout the European Union, help companies to improve their competitiveness and make Europe a more attractive place to do business.”
Why a Common Consolidated Corporate Tax Base?
The CCCTB constitutes a comprehensive solution to tackle in one go all the company tax obstacles arising when companies carry out cross border activities within the Internal Market.
Indeed, in addition to reducing compliance costs for companies operating across the Internal Market, the CCCTB will eliminate many of the existing intra-community transfer price difficulties, allow cross-border loss offsetting, simplify many international restructuring operations and avoid many situations of double taxation. It will contribute to greater simplicity and transparency in the 27 existing company tax systems, thereby promoting fair and open tax competition within the European Union. The European Commission has no intention to link the CCCTB with any proposal to harmonise tax rates.
The Commission advocates that:
This communication highlights the necessity to elaborate issues like:
The Commission's tax policy is an integral part of its comprehensive strategy to create more growth and jobs in the EU and to boost the competitiveness of EU companies.
The Commission concentrates on the improvement of a more favourable tax environment so that business and citizens can benefit from the full potential of the internal market. Attracting investment can be done in many ways and taxation plays a part in this.
The CCCTB constitutes a comprehensive solution to remove tax obstacles that EU companies face when operating in several Member States.
Further information on the Common Consolidated Corporate Tax Base is available on the following website: