European Commission Economic Commissioner Paolo Gentiloni to implement timely global minimum corporate tax rates and reallocation of taxing rights between jurisdictions to provide a fairer and more stable global corporate tax system said there was a need.
Gentiloni spoke at the 1st EU Tax Symposium in Brussels on 28th November 2022. The Tax Symposium brought together European and international finance ministers, high-level policymakers, academics and civil society to discuss the future of corporate tax. .
Gentiloni said last year’s historic global tax reforms agreed by 136 countries will bring significant improvements to the international tax environment, making it fairer and better suited to the modern economy.
“To reap the full benefits of this agreement, we must now ensure that both pillars of its reforms are implemented in Europe and globally,” he told the audience. “We are fully committed to this important reform.
Gentiloni said rapid implementation of the tax package is feasible.
“The Pillar 2 Global Anti-Base Erosion (GloBE) Model Regulation paves the way for consistent implementation at the global level. , is set for the first half of 2023,” he said.
Gentiloni said the European Commission will propose a set of tax rules for doing business in Europe next year.
“We call it BEFIT, which stands for Business in Europe: Framework for Income Taxation,” he added.
“BEFIT is inspired by two-pronged reforms at the global level, but goes further to provide a new corporate tax system that is tightly integrated and suitable for a single market. It will replace the country’s corporate tax system and reduce the cost of compliance and barriers to cross-border investment,” he said.
He added: This would be an important step in the fight against harmful tax competition. “
