Simplifying EU rules on direct taxation

The omnibus on taxation is an integral part of the Commission’s efforts to simplify EU law and will cut red tape for businesses, in order to boost competitiveness and improve the functioning of the EU legislative framework for corporate taxation (EU rules on parent companies and subsidiaries, interest and royalties, mergers, preventing tax avoidance, and dispute and resolution mechanisms). 

This initiative intends to simplify existing rules and enhance the business environment by, among others, reducing the administrative burden for businesses. In particular, this initiative should significantly reduce compliance costs for taxpayers, by allowing them to benefit from standardised procedures, more harmonised substantive provisions and rules, and an enhanced level of legal certainty. Simultaneously, this initiative will strengthen the current corporate taxation framework in such a manner that improves its current functioning and can enhance the EU’s competitiveness. In terms of fiscal impact, the envisaged measures aim to be tax neutral for taxpayers and will not lead to any material redistribution of tax revenues between Member States.

More details: HERE

Our Chamber would welcome your feedback on this topic, please send us your opinion via email – kiss.andras@hbkik.hu – till 2 November, 2026.

Source: ec.europa.eu