On 18 May 2021, the European Commission issued a communication on "Business Taxation for the 21st Century". The announcements made therein are expected to translate into actual legislative proposals in the next three years.

We have put all contemplated measures that are expected in the coming years in a clear timeline.

Download the timeline

If implemented, the measures would represent a systemic change to corporate taxation in the EU. Several short-term proposals would build upon the existing trends of increased transparency and substance requirements, and international negotiations on Pillar One and Pillar Two. The longer-term ambition is adopting a common set of rules to determine an EU consolidate corporate tax base to be shared between member states according to a formulary apportionment (tax rates would still be determined nationally). Finally, the communication also includes measures to support taxpayers. These plans show where the EU might be heading to.

Earlier we published an article on our website, where we classified the contemplated measures in five categories. Please click here to view this article.

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