Since 2011 the European Union (EU) has been planning to implement a Common Corporate Tax Base (CCTB) in order to simplify the European tax system.
Companies who operate Europe-wide are confronted with a wide diversity of different taxations in each member state. The planned approach with the CCTB intends to apply a standard taxable base within the EU. This would make it a lot easier and cheaper for companies to expand within the EU. Furthermore a cross-border loss off-setting is considered to put in place and only a single tax declaration in one EU member state would need to be completed. Lastly, transfer pricing and double taxation agreements would lose their significance.
Companies with a worldwide revenue that exceeds EUR 750 Mio. would be affected by the CCTB. The remaining companies can adopt CCTB on a voluntary basis.
Although Switzerland is not a member of the EU, CCTB would also have an effect on Swiss companies if they operate subsidiaries or plant locations in countries who belong to the EU.
The EU committee will discuss CCTB in December 2017. The implementation is planned to be in 2020.