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EU BEFIT Could Allow Companies Cross-Border Tax Relief for Losses

Jan. 25, 2023, 4:42 PM

A common European Union corporate income tax system for large companies would bring in offseting of losses across borders, and should generate substantial savings from no longer needing to comply with transfer pricing rules, the chair of the Federation of German Industries’ tax committee said.

The Business in Europe: Framework for Income Taxation, or BEFIT, reform, which the European Commission will propose later this year, had the potential to do away with “a lot of extra work, risk, and inefficiency,” said Christian Kaeser, speaking to the European Parliament’s tax subcommittee.

The commission, which is the EU’s executive, has ...