Simplifying EU rules on direct taxation (Omnibus taxation) – European Commission call for evidence

In the framework of its initiative to simplify EU rules on direct taxation, the European Commission has recently initiated a call for evidence with a view to preparing an omnibus legislative proposal. The call for evidence seeks to gather feedback on issues such as administrative costs, burdensome procedures, outdated or overlapping rules, and any lack of clarity or divergent interpretation of existing EU direct tax rules. It covers, inter alia, several key EU corporate tax directives, including the Anti-Tax Avoidance Directive, the Parent-Subsidiary Directive, the Interest and Royalties Directive, the Tax Merger Directive, and the Tax Dispute Resolution Mechanisms Directive.

The general objective of the initiative is to simplify the existing EU legal direct taxation framework and support the enhancement of competitiveness in the internal market, without undermining the important policy objectives of the Directives concerned (i.e., eliminate double taxation of profits, interest and royalty cross-border payments; ensure tax neutrality for cross-border corporate reorganisations; protect the internal market against aggressive tax planning; and ensure effective resolution of cross-border tax disputes). 

This will involve: 

• reducing unnecessary reporting and compliance burden;

• eliminating outdated and overlapping tax rules;

• simplifying tax legislation with the objective to improve competitiveness in the internal market;

• clarifying concepts in tax legislation;

• streamlining and improving the application of tax rules, procedures and reporting requirements. 

The call for evidence is open until 30 March 2026. 

If you are interested, the Chamber of Commerce invites you to participate directly via the following link: Call for evidence

Any company wishing to share its views or questions on the above-mentioned topic with the Chamber of Commerce is invited to contact juridique@cc.lu