Tax professionals in Europe’s biggest businesses are heavily in favor of European Commission proposals for a harmonized, pan European corporate tax system, a new study from KPMG International has found. Only Ireland and Slovakia register majorities against proposal.
Finance directors, tax directors and tax managers from over 400 companies, including some of the largest companies from all 27 EU countries and Switzerland, were asked their view of European Commission plans for a Common Consolidated Corporate Tax Base (CCCTB). The plans propose that the profits of businesses operating in more than one EU member state should be calculated according to a single EU-wide formula, rather than the 27 different formulae used today. Profits would then be reallocated to the countries in which the businesses are active, to be taxed at those countries’ tax rates.
The idea was supported by 78% of respondents across Europe. Tax professionals in the Czech Republic, Denmark and Spain were 100% in favor, along with 96% in Italy, 90% in Greece, Luxembourg, Poland, Romania, Slovenia and Sweden, 84% in Germany and 80% in Austria, Finland, Hungary and Portugal.
Among the large economies, the UK, was most skeptical, with 62% in favor and 32% against. Only Ireland and Slovakia registered majorities against the proposal, with 50% opposed in each country. The Commission has stressed that it is not proposing a single European corporate tax rate. But 69% of respondents said that in addition to the common corporate tax base they would like to see a single rate for the whole of Europe. Only the UK, Cyprus, Ireland, Poland and Switzerland recorded majorities against a single rate. Denmark was evenly split for and against, but in all other countries there was strong support
for the idea. (full article)