Clifford Chance

The relaunched common consolidated corporate tax base

18 November 2016

On 25 October 2016, the European Commission relaunched its proposal for a common consolidated corporate tax base (CCCTB). Under the new proposal, the CCCTB would be implemented in two stages: First, the creation of a common corporate tax base (CCTB) to harmonise the calculation of taxable profits across member states; and second, the consolidation of this tax base into the CCCTB to allocate the tax base between EU member states. The radical nature of the CCCTB means that it will struggle to obtain the required unanimous agreement. The CCTB is less radical, but has considerable disadvantages for taxpayers and tax authorities, with few obvious benefits. Businesses should keep a watching brief but take no steps for now.

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