Common Consolidated Corporate Tax Base and Tax incentive: Difference between pages

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''EU''.
1.  ''Tax and treasury''.


The Common Consolidated Corporate Tax Base (CCCTB) is a [[European Commission]] proposal (16 March 2011).
Tax incentives usually are tax-beneficial legal structures, designated physical locations, investments, activities, financial arrangements or instruments that are intended by the revenue authority attract exemption from - or reduced liability to - different forms of taxation.


CCCTB would be a single set of harmonised rules for calculating taxable profits, to replace the current different, national corporate tax rules in each EU Member State. Companies or qualifying groups of companies operating within the EU would use the proposed rules to calculate their taxable profits and losses, and file a single consolidated tax return for the whole of their EU activity. The calculated taxable profits would be shared among Member States on a formula, perhaps related in certain proportions to turnover, wage bill, number of employees, physical capital and such. Each Member State would then collect tax at its own national rate on its portion of the total profits.
Tax incentives are designed by the tax rule-setting authorities to encourage particular wanted activities, contrasted with unintended tax "loopholes" and over-aggressive tax planning.


A purpose of the common tax base would be to make tax competition among Member States more transparent.


This kind of tax incentives are also known informally as ''tax breaks''.


Critics of harmonisation see base differences as socially useful competition among Member States, allowing States differently to influence behaviour of companies as well as influencing tax revenues. Such critics also tend to value competition on tax rates. The critics view both these factors as encouraging governments to be more efficient.


2.


Supporters of harmonisation see base differences (and often rate differences too) as distortions, encouraging damaging corporate tax arbitrage between competing jurisdictions.
Additional tax - or less favourable tax treatment - attaching to activities, or omissions, that the tax rule-setting authority wants to discourage.


At Autumn 2014, no agreement had been reached on tax base harmonisation.


== See also ==


Supporters of harmonisation continue to argue the case, especially before their domestic electorates. Supporters of harmonisation have also proposed the introduction of a common tax base among a voluntary coalition of willing Member States ([http://europa.eu/legislation_summaries/glossary/enhanced_cooperation_en.htm enhanced co-operation]) if agreement among all Member States is not forthcoming.
* [[Advance tax ruling]]
 
* [[Business rates]]
For example, French President François Hollande [http://www.lepoint.fr/economie/hollande-fait-le-voeu-pieux-d-une-harmonisation-fiscale-europeenne-21-01-2014-1782831_28.php] said in 2014 that he wanted "[tax base] harmonisation with our largest neighbours" by 2020.
* [[Capital Gains Tax]]
 
* [[Capital tax]]
 
* [[Carbon tax]]
==See also==
* [[Charge]]
 
* [[Claims and elections]]
* [[Base erosion and profit shifting]]
* [[Cliff edge]]
*[[Code]]
* [[Concession]]
* [[Corporation Tax]]
* [[Corporation Tax]]
* [[Customs duty]]
* [[Determination]]
* [[Direct tax]]
*[[Directive]]
* [[Double tax treaties]]
* [[Double taxation]]
* [[Duty]]
*[[Ethics]]
* [[Federal Corporate Income Tax]]
* [[Foreign tax credit]]
*[[Framework]]
* [[Global minimum corporate tax rate]]
*[[Good practice]]
*[[Governance]]
*[[Guidance]]
* [[Incentive]]
* [[Income Tax]]
* [[Indirect tax]]
* [[Inheritance tax]]
* [[Internal Revenue Code]]  (IRC)
* [[Jurisdiction]]
* [[Landfill Tax]]
* [[Law]]
* [[Legislation]]
* [[Levy]]
* [[Marginal rate of tax]]
* [[National Insurance ]]
* [[OECD model tax convention]]
* [[Output tax]]
* [[Payroll tax]]
* [[Preferential tax regime]]
*[[Principle]]
* [[Profit after tax]]
* [[Profit before tax]]
* [[Regime]]
* [[Regulation]]
*[[Reporting]]
*[[Reputational risk]]
*[[Rules]]
* [[Sales Tax]]
*[[Standards]]
* [[Stealth tax]]
* [[Supertax]]
* [[Surcharge]]
* [[Tax]]
* [[Tax arbitrage]]
* [[Tax avoidance]]
* [[Tax base]]
* [[Tax base]]
 
* [[Tax compliance]]
* European Commission web page on the Common Tax Base http://ec.europa.eu/taxation_customs/taxation/company_tax/common_tax_base/index_en.htm
* [[Tax credit]]
* [[Tax depreciation]]
* [[Tax evasion]]
* [[Tax harmonisation]]
* [[Tax haven]]
* [[Tax planning]]
* [[Tax rate]]
* [[Tax relief]]
* [[Tax risk]]
* [[Tax ruling]]
* [[Tax shelter]]
* [[Tax shield]]
* [[Tax yield]]
* [[Treasury]]
* [[Trust]]
* [[UK Bank Levy]]
* [[Value Added Tax]]  (VAT)
* [[Wealth tax]]
* [[Withholding tax]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]

Revision as of 19:17, 28 January 2024

1. Tax and treasury.

Tax incentives usually are tax-beneficial legal structures, designated physical locations, investments, activities, financial arrangements or instruments that are intended by the revenue authority attract exemption from - or reduced liability to - different forms of taxation.

Tax incentives are designed by the tax rule-setting authorities to encourage particular wanted activities, contrasted with unintended tax "loopholes" and over-aggressive tax planning.


This kind of tax incentives are also known informally as tax breaks.


2.

Additional tax - or less favourable tax treatment - attaching to activities, or omissions, that the tax rule-setting authority wants to discourage.


See also

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