Common consolidated corporate tax base (CCCTB)

The European Commission decided to re-launch the common consolidated corporate tax base (CCCTB) project in a two-step approach, with the publication on 25 October 2016 of two new interconnected proposals: on a common corporate tax base (CCTB), and on a common consolidated corporate tax base (CCCTB).

The 2011 CCCTB proposal (COM(2011) 121) was withdrawn on the same day.

Building on the 2016 CCTB proposal, the 2016 CCCTB proposal introduced the consolidation aspect of this double initiative. Companies operating across borders in the EU would no longer have to deal with 28 different sets of national rules when calculating their taxable profits. Consolidation meant that there would be a 'one-stop-shop' – the principal tax authority – where one of the companies of a group, that is, the principal taxpayer, would file a tax return. To distribute the tax base among Member States concerned, a formulary apportionment system is introduced.

The legislative proposal fell under the consultation procedure. The report was adopted in the ECON committee of the European Parliamen on 21 February 2018 and Parliament’s opinion in plenary on 15 March 2018. The proposal was now in the hands of the Council of the European Union.

Author: Angelos Delivorias

Further information

‘EU Legislation in Progress’ briefings aim to provide Members of the European Parliament with systematic and automatic analysis on all substantial proposals for EU legislation at every stage of the legislative procedure. Each contains an account of the purpose, content and legal aspects of the legislation proposed, in particular analysing what the legislation would change, as well as any previous legislation and the background. An overview of stakeholders’ views is also provided, as well as the opinions of national parliaments and the two advisory committees.

They are all made publicly available for stakeholders and the public.

The briefings are continuously updated as they pass through the policy making process and the source url hyperlink above should take you to the latest available version.

EP: EPRS: Briefing: EU Legislation in Progress http://epthinktank.eu/eu-legislation-in-progress/

ESO: Proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) [COM(2016)683] http://www.europeansources.info/record/proposal-for-a-council-directive-on-a-common-consolidated-corporate-tax-base-ccctb-2/

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