Press Release: Company taxation: Commission proposes ‘Home State Taxation’ for SMEs

The European Commission on 10 January adopted a Communication that presented a possible solution to the compliance costs and other company tax difficulties that Small and Medium Enterprises (SMEs) face when doing business across borders. The Commission suggested that Member States allow SMEs to compute their company tax profits according to the tax rules of the home state of the parent company or head office.

• Primary Source

European Commission: COM(2005) 702 final, Communication ... Tackling the corporation tax obstacles of small and medium-sized enterprises in the Internal Market – outline of a possible Home State Taxation pilot scheme, 23.12.05 http://eur-lex.europa.eu/LexUriServ/site/en/com/2005/com2005_0702en01.pdf

European Commission: Memo: MEMO/06/4, Home State Taxation pilot project for SMEs – frequently asked questions, 10.1.05 http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/06/4&format=HTML&aged=0&language=EN&guiLanguage=en

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