2024-06-21-KPMG_s_EU_Tax_Centre-Euro_Tax_Flash_from_EU_Tax_Centre_9页_667kb

June 21 ECOFIN Meeting Conclusions Summary

1. Key Direct Tax Initiatives:

• FASTER Proposal:

  • A general approach was agreed on June 21, 2024, regarding the "Faster and Safer Relief of Excess Withholding Taxes" proposal. The directive now requires legislative approval following consultation with the European Parliament and legal-linguistic revisions. Further work aligns with ongoing political neutrality following elections.

• Unshell Proposal:

  • Member states support the initiative's objectives but require further technical work to determine the optimal legislative solution. A new approach from the Belgian presidency has been proposed, pending further negotiations and substantive compromise solutions.

• Transfer Pricing Proposal:

  • Member states rejected the current Transfer Pricing (TP) directive due to concerns about double standards and flexibility issues with respect to the OECD guidelines. Member states expressed interest in establishing a new soft-law Transfer Pricing Platform, which requires further technical groundwork.

• BEFIT Proposal:

  • Member states recognized the importance of simplifying tax rules but emphasized the need for technical work to resolve concerns, particularly regarding interactions with existing EU provisions like Pillar Two and the scope of the preliminary tax result. A political discussion was removed from the agenda due to these complexities.

• Head Office Taxation (HOT) Proposal:

  • The proposal was provisionally confirmed pending a political decision. Several Member states raised concerns regarding administrative burdens, tax sovereignty impacts, and potential effects on market competitiveness. Technical work was placed on pause until further political input is available.

2. UN Framework Convention for International Tax Cooperation:

• Member states support drafting an international framework convention on tax cooperation. Recent work includes publishing the "zero-draft" terms of reference for the UN Ad Hoc Committee's convention following a public consultation.

3. CoCG Activities:

• Notified of significant changes regarding preferential tax measures, including decision on amendments to country-specific regimes.
• Active monitoring ongoing, specifying timelines for follow-up on criteria.
• Broader cooperation mechanisms also listed, including the progress in collaborative measures.

4. Upcoming presidency changes:

• Hungarian Presidency (July 2024 onwards):
  • Priorities include advancing direct tax issues (such as BEFIT, TP, Unshell, FASTER continuation) while maintaining political neutrality and enhancing legal certainty, alongside responding to international tax cooperation and reforms.

This summary provides concise yet detailed observation of ongoing EU tax legislative efforts and policies for BEFIT, FASTER, Unshell, and other directives, added with procedural updates from the European amendments.