Ahead of the conclusion of its 2023 work plan on September 12th, the European Commission has adopted two crucial measures to strengthen the European Union’s economic landscape: the revision of the Late Payment Directive and the Business in Europe Framework for Income Taxation (“BEFIT”).
Revision of the Late Payment Directive
In response to the unprecedented challenges posed by economic disruptions and the COVID-19 pandemic, the European Commission has rolled out a comprehensive SME Relief Package, demonstrating its commitment to supporting small and medium-sized enterprises (SMEs) across the region.
The SME Relief Package is a multi-faceted initiative that combines financial assistance, regulatory flexibility, and business support programs. Through targeted grants, low-interest loans, and liquidity provisions, the package aims to alleviate the financial strain faced by SMEs and help them weather the storm.
The planned revision will take a more holistic approach, centred on three pillars: embedding prompt payment behaviour into law; fostering the use of modern digital payment tools to facilitate prompt payments; and strengthening prevention and enforcement of these rules across all industrial ecosystems.
Business in Europe: Framework for Income Taxation (“BEFIT”)
This new framework for EU corporate taxation should introduce “a common set of rules for EU companies to calculate their taxable base while ensuring a more effective allocation of profits between EU countries, based on a formula.” In other words, through BEFIT the Commission aims to overcome the complexity and high costs that businesses – particularly those with cross-border operations – experience as a result of having to comply with 27 separate corporate tax systems when doing business throughout the EU.
Interested in working with leading companies to set the next frontier of corporate tax transparency? Join CSR Europe’s dedicated collaborative platform. Platform members – including Enel, Fortum, Grundfos, Vattenfall, Ørsted – led by CSR Europe in partnership with the Fair Tax Foundation are working together towards the development of a tax index aimed at assessing companies’ performance on tax transparency and responsible tax behaviour.
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EU Affairs Senior Specialist
