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New transparency rules for tax rulings into force

04 January 2017, 23:56 CET
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New transparency rules for tax rulings into force

Pierre Moscovici - Photo EC

(BRUSSELS) - New rules which ensure EU Member States share information on national tax rulings handed out to multinational companies in other EU countries came into force 1 January.

As of 1 January 2017, Member States are obliged to automatically exchange information on all new cross-border tax rulings that they issue. This will be done through a central depository, accessible to all EU countries.

"We have a duty to make corporate taxation fairer and more transparent, and to use every means possible to block tax abuse and profit shifting", said taxation Commissioner Pierre Moscovici.

"The entry into force of the automatic exchange of information on cross-border tax rulings on 1 January marks a major step forward. It equips Member States and their national tax administrations with the information they need to detect certain abusive tax practices and take the necessary action in response," he added.

Under the new rules, national tax authorities will send a report to the depository every six months, listing all the cross-border tax rulings they have issued.

Other EU Member States will then be able to check those lists and to ask the issuing Member State for more detailed information on a particular ruling. This first exchange should take place by 1 September 2017 at the latest.

By 1 January 2018, Member States will also have to provide the same information for all cross-border rulings issued since the beginning of 2012.

Enhanced administrative cooperation in the field of (direct) taxation

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