This will prevent companies with the greatest capacity to tax plan from avoiding taxation. The CCCTB will be mandatory for the largest groups in the EU. The CCCTB will provide companies with legal certainty and reduce tax obstacles, by providing a single, stable, transparent corporate tax system for the EU. This is particularly important for small and start-up companies. It will allow companies to offset profits in one Member State against losses in another. The CCCTB will fully recognise companies' cross-border activities in the Single Market. It will provide a single EU system for companies to calculate their taxable income and a "one stop shop" to file a tax return for all their EU activity. The CCCTB will reduce red tape and cut compliance costs for companies in the Single Market. The CCCTB is a modern, fair and competitive corporate tax framework for the EU. Each Member State will then tax its share of the profits at its own national tax rate. The consolidated taxable profits will be shared between the Member States in which the group is active, using an apportionment formula. With the CCCTB, cross-border companies will only have to comply with one, single EU system for computing their taxable income, rather than many different national rulebooks.Ĭompanies can file one tax return for all of their EU activities, and offset losses in one Member State against profits in another. The Common Consolidated Corporate Tax Base (CCCTB) is a single set of rules to calculate companies' taxable profits in the EU.
The re-launched CCCTB will be implemented through a two-step process and will be mandatory for the largest groups in the EU.Ģ016 proposal on Consolidation - Annex What is the Common Consolidated Corporate Tax Base (CCCTB)? In October 2016, the Commission proposed to re-launch the Common Consolidated Corporate Tax Base.