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The Delineation and Apportionment of an EU Consolidated Tax Base for Multi-jurisdictional Corporate Income Taxation: a Review of Issues and Options

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  • Ana Agundez-Garcia

    ()
    (European Commission)

Abstract

The Commission Services study on Company Taxation in the Internal Market and the Communications COM(2001)582 and COM(2003)726 on EU company taxation presented a long-term strategy to tackle the corporate income tax obstacles in the Internal Market by providing multi-jurisdictional companies with a consolidated tax base for their EU-wide activities for corporate taxation purposes. This comprehensive approach relies on a number of crucial steps such as delineating the CTB and choosing the mechanism for apportioning the multinationals' tax bases between the relevant Member States, so that they can then apply the national corporation tax rate to their respective shares. This work systematically addresses some of the fundamental questions that arise when considering the design of a consolidation + apportionment system for sharing multinationals' consolidated profits between EU Member States.

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File URL: http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_papers/taxation_paper_09_complete_en.pdf
File Function: final version, 2006
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Bibliographic Info

Paper provided by Directorate General Taxation and Customs Union, European Commission in its series Taxation Papers with number 9.

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Length: 102 pages
Date of creation: Oct 2006
Date of revision: Oct 2006
Handle: RePEc:tax:taxpap:0009

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Web page: http://ec.europa.eu/taxation_customs/index_en.htm
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Related research

Keywords: European Union; Corporate Taxation; multinational taxation; formula apportionment;

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References

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Cited by:
  1. Clemens Fuest, 2008. "The European Commission´s Proposal for a Common Consolidated Corporate Tax Base," Working Papers 0823, Oxford University Centre for Business Taxation.
  2. Lourdes Jerez Barroso, 2011. "Base imponible y neutralidad del Impuesto de Sociedades: alternativas y experiencias," Hacienda Pública Española, IEF, vol. 197(2), pages 113-146, June.

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