European Commission – Anti Tax Avoidance Package
The European Commission presented a legislative package with new measures that will hamper aggressive tax planning, boost transparency between Member States and ensure fairer competition for all business in the single market.
This Anti Tax Avoidance Package contains several measures, including:
- Proposal of an “Anti Tax Avoidance” Directive;
- Revision of the Administrative Cooperation Directive;
- Recommendations to the Member States on how to prevent tax treaties abuse (Recommendation (EU) 2016/136 of the European Commission, 28 January 2016);
- Communication on an External Strategy for Effective Taxation;
- Actions to promote tax good governance internationally.
The package also includes a Chapeau Communication and Staff Working Document, which explain the political and economic rationale behind these measures. It is accompanied by a new Study on Aggressive Tax Planning, which looks at the main channels used by companies to avoid taxes.
This “Anti Tax Avoidance Package” calls on the Member States to take a stronger and more coordinated stance against companies that seek to avoid paying taxes and to implement the international standards against base erosion and profit shifting.
Recommendation (EU) 2016/136 of the European Commission, 28 January 2016
The European Commission has adopted Recommendation (EU) 2016/136 on the implementation of measures against tax treaty abuse. In this context, the European Commission recommended the adoption by Member States – in tax treaties concluded among themselves or with third countries – of a General anti-avoidance rule based on a principal purpose test, as well as the implementation by Member States of a definition of a permanent establishment, in order to address base erosion and profit shifting.
Form 3 of Personal Income Tax (Income Tax Return)
A leaflet concerning the submission of Form 3 of Personal Income Tax was published on the website of the Tax and Customs Authority, regarding the mechanisms of fulfilment of the obligation, the identification of those who are not obliged to submit it, deductions, tax benefits and rates.
Form 44 of Personal Income Tax– Annual Statement of Rents Received
A leaflet concerning the submission of the Form 44 of Personal Income Tax was published on the website of the Tax and Customs Authority, regarding the identification of those who are obliged to submit it and the respective deadlines.
Form 2 of Property Tax– Statement of Supply Contracts (Water, Energy and Telecommunications)
A leaflet concerning the submission of the Form 2 of Property Tax was published on the website of the Tax and Customs Authority, clarifying some questions regarding its submission.