{"id":12075,"date":"2026-07-03T00:00:00","date_gmt":"2026-07-02T22:00:00","guid":{"rendered":"https:\/\/bbc-company.net\/?p=12075"},"modified":"2026-07-15T13:34:54","modified_gmt":"2026-07-15T11:34:54","slug":"eu-tax-law-simplification-package","status":"publish","type":"post","link":"https:\/\/bbc-company.net\/en\/eu-tax-law-simplification-package","title":{"rendered":"Possible turning point in EU tax law: Commission adopts far-reaching tax simplification package"},"content":{"rendered":"<p>On 24 June 2026, the European Commission adopted a comprehensive legislative package to modernize direct taxation. The package consists of two central pillars: the Tax Omnibus Act and the recast of the Directive on Administrative Cooperation (DAC).<\/p>\n<p>The aim of the reform package is to significantly reduce the bureaucratic burden for companies operating across borders. The cumulative legislative initiatives of the past ten years have substantially increased compliance costs. Under the new rules, EU companies are expected to save around EUR 8 billion per year \u2013 including EUR 3.3 billion in pure administrative costs alone.<\/p>\n<p>Key tax reforms at a glance<\/p>\n<h3>Tax Omnibus Act<\/h3>\n<ul>\n<li><strong>Abolition of withholding tax:<\/strong> Companies are to be fully exempt from withholding tax on cross-border payments of dividends, interest and royalties within the EU.<\/li>\n<li><strong>Simplified financing rules:<\/strong> Unnecessary restrictions on debt and market-based financing are to be removed. In addition, the interest limitation rule under the Anti-Tax Avoidance Directive (ATAD) will be simplified by eliminating implementation options and introducing a mandatory de minimis threshold.<\/li>\n<li><strong>Elimination of overlapping structures:<\/strong> Overlaps between the rules on controlled foreign companies (CFC) and the global minimum tax are to be eliminated. This would significantly reduce complexity for internationally operating corporate groups.<\/li>\n<\/ul>\n<h3>DAC recast<\/h3>\n<ul>\n<li><strong>Removal of reporting obligations for cross-border arrangements:<\/strong> Multinational enterprise groups already subject to the 15% minimum tax rate are to be exempt from certain reporting obligations. Reporting requirements are also to be removed for other EU companies.<\/li>\n<li><strong>Relief for e-commerce:<\/strong> The reporting threshold for online sales of goods is to be increased. As a result, more than 10 million private sellers, particularly of second-hand goods, would be exempt from reporting obligations.<\/li>\n<li><strong>Digital tool for taxpayer identification:<\/strong> A new verification tool for taxpayer identification numbers is to be introduced, enabling authorities to assign reported taxpayers more quickly and accurately.<\/li>\n<\/ul>\n<h3>What does this mean for your company?<\/h3>\n<p>The package must now be submitted to the European Parliament for consultation and to the Council for adoption. For internationally active companies, this is a clear signal that relief in cross-border compliance is on the horizon. Nevertheless, transition periods and the precise implementation in the individual Member States must be monitored carefully.<\/p>\n<p>Would you like to make your international tax strategy future-proof?<\/p>\n<p>Contact us and schedule a consultation with our experts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 24 June 2026, the European Commission adopted a comprehensive legislative package to modernize direct taxation.<\/p>\n","protected":false},"author":3,"featured_media":11995,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"slim_seo":{"title":"Possible turning point in EU tax law: Commission adopts far-reaching tax simplification package - BBC European TAX","description":"On 24 June 2026, the European Commission adopted a comprehensive legislative package to modernize direct taxation."},"footnotes":""},"categories":[89,32],"tags":[],"class_list":["post-12075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-tax-law","category-publications"],"_links":{"self":[{"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/posts\/12075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/comments?post=12075"}],"version-history":[{"count":1,"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/posts\/12075\/revisions"}],"predecessor-version":[{"id":12078,"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/posts\/12075\/revisions\/12078"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/media\/11995"}],"wp:attachment":[{"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/media?parent=12075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/categories?post=12075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bbc-company.net\/en\/wp-json\/wp\/v2\/tags?post=12075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}