On 29 May, the EU Council formally adopted a directive amending the 2016 EU Anti-Avoidance Directive which is designed to prevent corporate groups from exploiting the disparities between two or more non-EU jurisdictions to reduce their overall tax liability. The new directive has been adopted as part of the EU Council's implementation of the OECD's recommendations on hybrid mismatches under Action 2 of the BEPS project. The text of the directive was originally agreed at a meeting on 21 February 2017 and the European Parliament provided its opinion on the directive on 27 April 2017. Significantly, it will extend the EU's anti-hybrid rules to transactions between Member State and non-Member State parties.
EU member states have until 1 January 2020 to transpose the directive into national laws and regulations (although implementation of certain aspects may be delayed until 2022).