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The European Union (EU) seeks to harmonize tax policies of its Member States to avoid unfair competition, double taxation and tax evasion. Although each country has autonomy On your tax system, EU directives and regulations influence directly into how businesses operate and pay taxes.

2. Key Areas Affected by European Legislative Changes

a) Corporate Taxation and Pillar 2 of the OECD

• Global Minimum Rate of 15%: The EU has adopted measures based on the OECD agreement to implement a global minimum tax of 15% on the profits of multinationals with revenues exceeding 750 million euros.
• Impact: Companies with a presence in several countries must evaluate their tax structures and consider how to optimize your operations within this new framework.

b) Fight against Tax Evasion: ATAD Directive

• Anti-Tax Abuse Directive (ATAD): Seeks to prevent companies from using aggressive structures to reduce their tax burden. It includes provisions such as:
  • Limitation of interest deduction.
  • Rules on the taxation of profits in tax havens.
• Impact: Companies should review their tax planning strategies to comply with these regulations and avoid sanctions.

c) Taxation of Digital Commerce

• The EU is working on a fiscal framework to tax activities digital platforms from large technology platforms that operate in multiple countries.
• Impact: Technology companies and businesses with a strong digital presence They could face new taxes based on where they generate income, not just where they are physically located.

d) VAT reforms

• VAT regime for electronic commerce: The Electronic Commerce Directive obliges companies to collect VAT in the country where the final consumer makes the purchase.
• Impact: Companies that sell products or services cross-border must adapt to the rules of the “One-Stop Shop” (OSS), simplifying VAT compliance, but demanding greater transparency.

3. Changes in Fiscal and Environmental Sustainability

Green Taxes

• The EU promotes fiscal measures to promote sustainability, such as border adjustment mechanism for carbon emissions (CBAM), which taxes imports with a high carbon footprint.
• Impact: Companies in the industrial and energy sectors must prepare for additional carbon-related costs and consider investments in sustainability.

Green Tax Deductions and Subsidies

• Companies can access tax incentives if they invest in energy renewables, emissions reduction and circular economies.

4. Effects for SMEs and Multinationals

For SMEs

• Compliance costs: Changes, especially in VAT and sustainability, can increase administrative costs.
• Opportunities: Access to green tax incentives and European aid programs.

For Multinationals

• Greater tax transparency: The EU requires reporting profits and tax payments by country (Country-by-Country Reporting).
• Tax restructuring: Large companies must redesign their strategies to comply with global minimum tax regulations and anti-abuse regulations.

5. Recommendations for Companies

1. Assess the impact of legislative changes: Conduct tax audits to ensure compliance.
2. Take advantage of European tax incentives: Especially in areas such as digitalization and sustainability.
3. Training and adaptation: Stay up to date with regulatory changes and train staff in international tax compliance.
4. Specialized advice: Hire expert consultants in international taxation to avoid risks and optimize opportunities.