Taxation

Companies generate growth, create jobs and foster prosperity for citizens. Paying taxes is only a fraction of their contribution to society and corporation tax is just a small part of the overall tax paid by businesses.

BusinessEurope supports fair tax competition and shares the objective of fighting fraud and evasion. Governments and businesses must work together to ensure that international tax agreements remain fit for purpose as globalisation evolves. International rules on corporation tax must be clear, transparent, objective and predictable.

Facts and figures

In 2017, businesses paid nearly EUR 2 trillions of taxes in the EU, through corporate tax, social security contributions, property, resource, energy, environmental and other taxes. In addition to paying taxes, enterprises help tax systems to run smoothly by collecting VAT and income tax from their employees.
The average tax wedge in the EU is almost one third higher than in Japan and the USA.
The EU share of worldwide foreign direct investment inflows has fallen by two fifths from 55% in 2007 to 31% in 2017.

Source: BusinessEurope Reform Barometer

Publications

Position papers		Date
	VAT in the Digital Age - BusinessEurope’s comments in response to the public consultation	03/04/2023
	Business in Europe: Framework for Income Taxation (BEFIT) - BusinessEurope’s comments in response to the public consultation	25/01/2023
	Debt-equity bias reduction allowance (DEBRA) - a BusinessEurope position paper	13/10/2022
	New EU system for the avoidance of double taxation and prevention of tax abuse in the field of withholding taxes - BusinessEurope reply to the public consultation	24/06/2022
	Unshell - Laying down rules to prevent the misuse of shell entities for tax purposes - a BusinessEurope position paper	12/05/2022
	VAT in the digital age – BusinessEurope reply to the public consultation	03/05/2022
	Directive on ensuring a minimum level of taxation for multinational groups within the European Union (‘Pillar Two’) - a BusinessEurope position paper	02/02/2022
	Debt-Equity Bias Reduction Allowance (DEBRA) - BusinessEurope reply to the public consultation	06/10/2021
	Cross-border resolution of tax disputes for SMEs: a European framework - BusinessEurope reply to the European Commission survey	07/09/2021
	Fighting the use of shell entities and arrangements for tax purposes - BusinessEurope's reply to the public consultation	24/08/2021
	Improving the situation of EU citizens as taxpayers for indirect tax - BusinessEurope reply to the public consultation	01/06/2021
	Review of VAT rules for financial and insurance services - BusinessEurope reply to the public consultation	21/04/2021
	EU digital levy - BusinessEurope reply to the public consultation	15/03/2021
	OECD reports on the Pillar 1 and Pillar 2 blueprints - BusinessEurope's reply to the public consultation	09/12/2020
	Revision of the energy taxation directive - BusinessEurope's reply to the public consultation	13/10/2020
	Special VAT scheme for travel agents and tour operators - BusinessEurope's reply to the public consultation	09/09/2020
	Strengthen the Exchange of Information Framework in the Field of Taxation - BusinessEurope's reply to the public consultation	23/03/2020
	Comments on the OECD Public Consultation on the Global Anti-Base Erosion Proposal (GloBE) under Pillar 2	02/12/2019
	Proposal for a unified approach under OECD Pillar 1 - BusinessEurope’s reply to the public consultation	08/11/2019
	Introducing certain requirements for payment service providers - BusinessEurope position paper on the European Commission directive	03/06/2019
	Addressing the tax challenges of the digitalisation of the economy - BusinessEurope response to the OECD public consultation	06/03/2019
	Definitive VAT system for cross-border trade	14/12/2018
	Taxation of the digital economy - a BusinessEurope position paper	13/07/2018
	Evaluation of the EU framework for taxation of energy products and electricity - BusinessEurope's reply to the public consultation	04/06/2018
	Proposed amendment to VAT treatment of SMEs	20/03/2018
	Fair taxation of the digital economy - BusinessEurope's reply to the public consultation	21/12/2017
	Generalised reverse charge mechanism - a BusinessEurope position paper	28/03/2017
	Modernising VAT for cross-border e-commerce - a BusinessEurope position paper	28/03/2017
	Special scheme for small enterprises under the VAT directive - BusinessEurope's reply to the public consultation	20/03/2017
	Definitive VAT system for business-to-business (B2B) intra-EU transactions on goods - BusinessEurope's reply to the public consultation	20/03/2017
	Double taxation dispute resolution mechanism - a BusinessEurope position paper	22/02/2017
	Common corporate tax base (CCTB) and common consolidated corporate tax base (CCCTB) - a BusinessEurope position paper	22/02/2017
	Disincentives for advisors and intermediaries for potentially aggressive tax planning schemes - BusinessEurope's reply to the open public consultation	15/02/2017
	VAT Action Plan - a BusinessEurope position paper	09/11/2016
	Public country-by-country reporting - a BusinessEurope position paper	06/07/2016
	BusinessEurope position on the Public Discussion Draft on BEPS Action 15: Development of a Multilateral Instrument to Implement the Tax treaty related BEPS Measures	30/06/2016
	Consultation on improving double taxation dispute resolution mechanisms - BusinessEurope reply and comments	09/05/2016
	BusinessEurope position on the anti-tax avoidance package	07/03/2016
	Re-launch of the common consolidated corporate tax base - BusinessEurope reply to the public consultation	07/01/2016
	Tax transparency: tax rulings are essential for companies to invest in Europe	15/10/2015
	BusinessEurope supplementary response to the consultation on further corporate tax transparency	09/09/2015
	Review of existing VAT legislation on public bodies and tax exemptions in the public interest - a BusinessEurope position paper	24/04/2014

Public letters		Date
	Component Taxation in the Energy Tax Directive recast - Letter from Markus J. Beyrer to Elizabeth Svantesson, Minister for Finance of Sweden	01/03/2023
	Global minimum tax - EU's Pillar Two Directive - Letter from Markus J. Beyrer to Zbynĕk Stanjura	28/11/2022
	Proposal for Securing the Activity Framework of Enablers (SAFE) - Letter from Markus J. Beyrer to Gerassimos Thomas, Director General DG TAXUD	27/10/2022
	Extraordinary tax measures - Letter from Markus J. Beyrer to Zbynĕk Stanjura	31/08/2022
	The carbon border adjustment mechanism (CBAM) and minimum corporate tax - Letter from Markus J. Beyrer to Bruno Lemaire ahead of the Council of Economic and Finance Ministers meeting on 15 March 2022	10/03/2022
	EU implementation of OECD corporate tax reforms - Letter from Markus J. Beyrer to Paolo Gentiloni	30/11/2021
	European Commission proposal for a digital levy - Letter to Ursula Von der Leyen, President of the European Commission	07/07/2021
	Interinstitutional negotiations on public country-by-country reporting (Public CbCR) - Letter from Markus J. Beyrer	23/03/2021
	Interest limitation rule - Letter from Markus J. Beyrer to European Commissioner Paolo Gentiloni	12/06/2020
	Directive on administrative cooperation (DAC6) - Letter from Markus J. Beyrer to EU Commissioner Paolo Gentiloni	27/04/2020
	Explanatory notes on VAT quick fixes - Letter from James Watson to Maria Elena Scoppio	07/10/2019
	VAT Treatment of Vouchers - Letter from James Watson to Maria Teresa Fabregas-Fernandez, Director of Indirect Taxation and Tax Administration, Directorate-General: Taxation and Customs Union	16/05/2019
	Dispute resolution and avoidance mechanisms - Letter from James Watson to Martin Kreienbaum, Chair of the OECD Committee on Fiscal Affairs	13/12/2018
	Digital taxation - Letter from Markus J. Beyrer to President of the ECOFIN-Council Hartwig Löger	30/11/2018
	Digital taxation - Letter from Markus J. Beyrer to European Commission Vice-President Valdis Dombrovskis	04/12/2017
	BEPS Action 7: additional guidance on the attribution of profits to permanent establishments - BusinessEurope position on the public discussion draft	06/11/2017
	BEPS Action 10: revised guidance on profit splits - BusinessEurope position on the public discussion draft	06/11/2017
	Public country-by-country reporting - Letter from Markus J. Beyrer to Roberto Gualtieri, Chair of the EP ECON Committee	30/03/2017
	Letter from Markus J. Beyrer, BusinessEurope's Director General, to Mr Jacob J. Lew Secretary of the US Treasury	06/07/2016
	General reverse charge mechanism - Letter from James Watson to the Luxembourg Presidency	18/11/2015
	The financial transaction tax and its impact on investment and growth - Joint letter to Pierre Gramegna, Minister of Finance of Luxembourg	06/11/2015
	Tax transparency: tax rulings are essential for companies to invest in Europe - Letter from Markus J. Beyrer to Alain Lamassoure	15/10/2015
	BusinessEurope supplementary response to the consultation on further corporate tax transparency - Letter from Markus J. Beyrer to Lord Jonathan Hill	09/09/2015
	BusinessEurope comments on the OECD revised discussion draft on BEPS "Action 8: hard-to-value intangibles" 4 June-18 June 2015	18/06/2015
	BusinessEurope comments on the OECD revised discussion draft on BEPS "Action 6: prevent Treaty absue" 22 May-17 June 2015	17/06/2015
	Income tax code in the Hellenic Republic - Letter from Markus J. Beyrer to Yianis Varoufakis, Greek Minister of Finance	15/06/2015
	BusinessEurope comments on the OECD revised discussion draft on BEPS "Action 7: preventing the artificial avoidance of PE status" 15 May-12 June 2015	11/06/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Action point 11: improving the analysis of BEPS" 16 April-8 May 2015	08/05/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Action point 12: mandatory disclosure rules" 31 March-30 April 2015	30/04/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Action 3: strengthening CFC rules" 3 April-1 May 2015	29/04/2015
	Electronic road freight control system (EKAER) in Hungary: examples - Letter from James Watson to DG TAXUD	16/04/2015
	BusinessEurope comments on the OECD public discussion draft "Chapter I of the transfer pricing guidelines (including risk recharacterisation, and special measures)" 1 December 2014-6 February 2015	06/02/2015
	BusinessEurope comments on the OECD public discussion draft on the use of profit splits in the context of global value chains 16 December 2014-6 February 2015	06/02/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Transfer pricing aspects of cross-border commodity transactions" 16 December 2014-6 February 2015	06/02/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Release of a discussion fraft on Action 4 (interest deductions and other financial payments)" - 19 December 2014-6 February 2015	06/02/2015
	The Financial Transaction Tax and its impact on investment and growth - Letter from Markus J. Beyrer to Janis Reirs, Ministry of Finance of the Republic of Latvia	23/01/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Make dispute resolution mechanisms more effective" 18 December 2014-16 January 2015	16/01/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Action 10: proposed modifications to chapter VII of the transfer pricing guidelines relating to low value-adding intra-group services" 3 November 2014-14 January 2015	13/01/2015
	BusinessEurope comments on the OECD public discussion draft on BEPS "Action 7: preventing the artificial avoidance of PE status" 31 October 2014-9 January 2015	09/01/2015
	BusinessEurope comments on the OECD public discussion draft "Follow-up work on BEPS action 6: preventing treaty abuse" 21 November 2014-9 January 2015	08/01/2015
	BusinessEurope comments on the OECD public discussion draft "BEPS Action 2: neutralise the effects of hybrid mismatch arrangements"	02/05/2014
	Financial transaction tax - Letter from Markus J. Beyrer to Ioannis Stournaras, Greek Minister for Finance	30/04/2014
	BusinessEurope comments on the OECD public discussion draft "BEPS Action 1: address the tax challenges of the digital economy"	10/04/2014
	BusinessEurope comments on OECD discussion draft "BEPS Action 6: preventing the granting of treaty benefits in inappropriate circumstances"	09/04/2014
	Revision of the parent-subsidiary directive - Letter from Markus J. Beyrer to Ioannis Stoumaras in advance of the ECFIN Council meeting on 11 March 2014	25/02/2014
	EU VAT web portal - Letter from James Watson to Heinz Zourek	24/02/2014
	BusinessEurope comments on the OECD discussion draft on transfer pricing documentation and country-by-country reporting	23/02/2014

Press releases		Date
	EU own resources plans must not add burden on business	22/12/2021
	Corporate tax should support growth and investment	18/05/2021
	Digital taxation should be based on OECD agreement	21/03/2018
	EU Commission VAT proposals can lead to less complexity, less fragmentation, less tax fraud and evasion	04/10/2017
	Tax systems must support the take-up of digital technologies in Europe	21/09/2017
	Sailing the wind of economic improvements to further strengthen Europe	13/09/2017
	EU Commission’s CCCTB proposals need careful business consideration	25/10/2016
	Country-by-country reporting risks damaging EU investment	12/04/2016
	EU business supports Commission plan to modernise VAT	07/04/2016
	EU should fight tax fraud and evasion, but not as lone front-runner	26/01/2016
	Tax rulings are essential to encourage companies to invest in Europe	18/03/2015
	EU national budgets: flexibility and enforcement must go hand in hand - a BusinessEurope press release	14/01/2015