Author: Europe News Desk

In a significant step towards implementing the OECD’s Pillar Two global minimum tax rules, Belgian tax authorities have published a draft version of the annual return that multinational enterprise (MNE) groups and large domestic business groups will be required to file under the national top-up tax regime, effective for financial years beginning in 2024. The draft return, currently released for information purposes only, marks the beginning of Belgium’s compliance efforts with the OECD’s Global Anti-Base Erosion (GloBE) framework, which sets a global minimum effective tax rate of 15% for large corporate groups with consolidated revenues exceeding €750 million. While the…

Facing mounting public debt, France is moving to make a previously temporary wealth tax a permanent fixture. Economy and Finance Minister Eric Lombard announced during an interview. According to official statistics, France’s public debt surged by €202.7 billion last year, reaching €3.3 trillion, or 113% of GDP. Lombard acknowledged that the debt level threatens the country’s financial stability, leading to plans for a €40 billion fiscal adjustment focused mainly on spending cuts and savings. Lombard proposed maintaining the “exceptional contribution” initially introduced as a temporary measure for high earners to address the budget shortfall. Under the current framework, individuals earning…

As of January 1, 2025, Russia will enact significant changes to its corporate income tax system under Federal Law No. 176-FZ, passed on December 7, 2024. These amendments to Parts One and Two of the Russian Tax Code will introduce key revisions to the corporate income tax (CIT) rate and additional provisions for specific sectors. Businesses, especially those in high-tech industries, foreign operations, and specific natural resource sectors, need to be prepared for these upcoming changes. Here’s a detailed breakdown of what’s coming: Changes to Corporate Income Tax Rates Russia’s corporate income tax rate will increase from 20% to 25%…

As the UK struggles to revitalize its post-pandemic economy, a little-noticed piece of research commissioned by HMRC in 2017 has renewed relevance.The study, aimed at understanding how the tax system affects small and medium-sized enterprises (SMEs) on steep growth trajectories, offers uncomfortable lessons and overlooked opportunities. At its heart, the research suggests a simple but consequential truth:The very businesses best placed to drive innovation, exports and job creation are often the ones most constrained by the UK’s tax framework. Complexity at Scale While tax complexity is a familiar complaint across the business landscape, its impact on scaling SMEs is especially…

When cross-border trade depends on milliseconds, getting a head start is no longer optional; it’s strategic.Today, a select group of companies is testing commercial software solutions for the UK’s New Computerised Transit System (NCTS), an ambitious modernization effort to streamline customs processing after Brexit. The NCTS aims to digitize and expedite the movement of goods under customs control across the UK and EU borders. While the project has been years in the making, real-world testing marks a critical turning point; separating firms ready for a next-generation customs environment from those likely to face painful disruption. NCTS Phase 5 in the…

Denmark’s regional finances for 2024 are now fully disclosed, and the numbers provide a clear picture of the country’s budget priorities. According to recent data from Statistics Denmark, the regions allocated a substantial 138.9 billion DKK to healthcare, reflecting the government’s ongoing commitment to public health. However, while health spending remains within budgetary expectations, regional development projects have seen a slight overrun, particularly in infrastructure investments. These figures raise important questions for policymakers, particularly as discussions around the region’s economic framework for 2026 are set to begin next month. What does this mean for the future of regional investments, and…

The Lithuanian Parliament (Seimas) has initiated a review of Bill No. 25-6750, which proposes changes to the country’s VAT Law. The bill aims to adjust preferential VAT rates affecting key sectors, including tourism, transportation, cultural services, and publishing. Key Measures in the Bill: 1. Preferential VAT Rate Increase: Under the proposed amendments, the preferential VAT rate will rise from 9% to 12%, effective January 1, 2026. This increase will apply to the following categories: 2. Clarification of the 5% VAT Rate: The bill clarifies that the current 5% reduced VAT rate is applicable to: Certain exceptions are also outlined in…

European businesses are not only the backbone of economic activity but also the primary tax collectors across the continent. As of 2023, European companies are responsible for paying and remitting an average of 87% of all taxes collected in the region. From large multinationals in Germany and France to small businesses in Lithuania, the corporate sector shoulders a significant portion of public finance responsibility. The extent to which businesses are involved in tax remittance varies by country, but the reliance on businesses for tax revenue is undeniable. This raises a pivotal question: What does this heavy reliance on the business…

The Global Trade Implications of Reeves’ Review of UK’s Low-Value Import Loophole The world of international trade is at a crossroads, and the United Kingdom’s latest move to review its tax framework could have significant ripple effects. Chancellor Rachel Reeves is set to tackle the controversial “de minimis” rule, which has allowed low-value imports — often from China’s e-commerce giants like Shein and Temu — to bypass customs duties and taxes. This loophole has come under increasing scrutiny, and Reeves’ decision to act is poised to reshape UK retail landscapes, with ramifications extending beyond the UK borders. Reeves, taking a…

The Taxation (Cross-border Trade) Act 2018 (TCTA) was enacted as a foundational legal framework to establish the UK’s independent customs, VAT, and excise regimes following its departure from the European Union. While the Act provided the necessary legislative tools to manage trade autonomously, its implementation and subsequent developments have introduced complexities that warrant further examination.​ Key Provisions and Implementation The TCTA replaced the EU’s Union Customs Code, introducing a UK-specific customs regime. It granted the government powers to impose and regulate customs duties, VAT, and excise duties on imported and exported goods. Notably, the Act allowed for:​ The Act’s flexible…