The direct taxation Omnibus: Simpler tax rules for a more competitive Europe – a BusinessEurope position paper

Key messages

• Simpler tax rules are an important part of making Europe more competitive. The Direct Taxation Omnibus offers an opportunity to remove unnecessary costs and obstacles to crossborder investment. The Council negotiations must now turn that opportunity into meaningful change for businesses.
• The main simplification measures need to be preserved. Withholding tax reform could deliver an estimated €5.3 billion in annual savings. Reducing overlap between Pillar Two and CFC rules, improving the treatment of investment financing and encouraging R&D would also make a practical difference to businesses.
• Simplification should reduce complexity, not move it elsewhere. Existing rules need to be reconsidered as the tax framework evolves. The benefits of the Omnibus should not be lost through new requirements introduced during the negotiations or through national implementation.
• The wider European interest must remain central to the negotiations. Member States have legitimate concerns about tax revenues and safeguards against abuse. But these need to be weighed against the longer-term benefits for growth, investment and the Single Market. Agreement should be reached as early as possible.