Recent Tax Developments in Europe

Despite COVID-19, the international tax environment continues to transform.

Has your organization updated its method of operation to comply with the new requirements?

The EU Anti-Tax Avoidance Directive (“ATAD”) contains five legally binding anti-abuse measures implemented by most Member States against common forms of aggressive tax planning. Member States that have applied such measures shall provide a minimum level of protection against corporate tax avoidance throughout the EU, whilst at the same time ensuring a fairer and more stable environment for businesses.

1.Interest limitation

In order to discourage the artificial shifting of debt arrangements designed to minimize taxes. “ATAD” requires member states to implement measures limiting the tax deductibility of interest on debt, using a fixed percentage.

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