Parliament calls for an assessment of the tax agreement with the US and a narrower version of the common corporate taxation system

The European Parliament calls on the Commission to assess the impact of the international agreement that allows the US tax regime to operate in parallel with the 15% global minimum tax, including any potential revenue losses for EU countries. MEPs also call for the BEFIT project for taxing companies in the single market to be reconsidered, with the possibility of a narrower and phased approach, as well as for the continued simplification of tax rules.

The European Parliament calls on the Commission to analyse the effects of the new international arrangement on the global minimum tax on the tax revenues of EU countries and to reconsider the BEFIT project for a common system of company taxation in the single market. The position on the future of corporate taxation was adopted on 6 October, at a time when the OECD rules on the 15% minimum tax are being adapted so that they can operate in parallel with the US tax regime.

In brief

1.The Parliament calls on the Commission to assess the impact of the “Side-by-Side” agreement, including on the tax revenues of Member States.

2.The international arrangement allows the OECD rules on the 15% global minimum tax to coexist with the US regime applicable to the foreign profits of groups with a parent company in the US.

3.MEPs call for BEFIT to be reconsidered and for a narrower proposal implemented in stages to be considered.

4.The Parliament supports the continued simplification of European rules on company taxation and the reduction of overlaps and compliance costs.

5.The resolution is a political position of the Parliament. It does not directly change corporate tax rates and does not, by itself, change national tax legislation.

One of the main changes in the international tax environment is the “Side-by-Side” package agreed within the OECD at the beginning of 2026. It seeks to enable the coordinated operation of the Pillar Two system, built around an effective minimum tax rate of 15% for large multinational groups, and the US tax regime for the foreign income of companies with a parent company in the United States. The OECD presents the agreement as a way to preserve the stability of the system and reduce compliance costs, including through new safe-harbour mechanisms.

However, the Parliament warns that the existence of several regimes operating in parallel could increase fragmentation of the international system. The adopted position calls on the Commission to analyse the concrete consequences of the new arrangement, including its effects on the tax revenues of Member States and on the competitive conditions between European companies and those in other jurisdictions. The report was prepared by Kinga Kollár, a Hungarian EPP MEP, in the Committee on Economic and Monetary Affairs.

The global minimum tax does not establish a general 15% rate for all companies. Pillar Two targets multinational groups and large domestic groups that exceed the thresholds set by the international framework and European legislation and seeks to ensure that their profits bear an effective minimum level of taxation. Member States continue to set their own corporate tax systems and rates within the limits of EU law.

Another recommendation concerns BEFIT, the project through which the Commission is seeking to create common rules for calculating the tax base of certain groups of companies operating in several Member States. The Parliament calls on the Commission to reassess the proposal in light of the changes brought about by Pillar Two and to consider a narrower approach developed in stages, in order to avoid layering new rules over international obligations already introduced.

This request does not mean that the BEFIT project would be eliminated, nor does it mean that a new system would be introduced immediately. The BEFIT proposal has its own legislative procedure, and any amendments or replacement with a narrower text would require a separate Commission initiative and the institutional negotiations provided for tax legislation.

Simplification is the second important pillar of the Parliament’s position. Companies operating in several countries face different national rules and European and international obligations that may overlap. MEPs support reducing administrative burdens and improving coordination between existing rules, without abandoning instruments against tax evasion, tax avoidance and the artificial shifting of profits.

The Commission already presented a Taxation Omnibus in June that amends several European directives on direct taxation. The package seeks to remove outdated or overlapping rules, simplify procedures and reduce compliance costs for cross-border activities. The Commission estimates savings of approximately EUR 7.9 billion per year for companies, of which approximately EUR 3.3 billion would result from reduced administrative costs. These figures are the Commission’s estimates of the proposal’s impact, not savings already achieved.

The Parliament is also addressing separately the issue of taxing the digital economy. The failure so far to implement Pillar One, the OECD mechanism intended to redistribute part of the taxing rights to countries where markets and users are located, maintains pressure for European or national solutions. Some Member States already apply digital services taxes, creating a risk of different tax bases and reporting obligations in the single market.

The resolution supports continued international cooperation within the OECD and the UN process for a convention on international tax cooperation. For the Parliament, the objective is to preserve the EU’s capacity to combat base erosion and profit shifting, while ensuring that the rules remain sufficiently predictable for companies that invest and operate across borders.

The position was adopted through an own-initiative procedure, 2025/2210(INI), which has now been completed in the Parliament. It sets out the political priorities of MEPs, but is not a legislative act and does not directly amend the tax legislation of Member States.

https://2eu.brussels/ro/news/parlamentul-cere-evaluarea-acordului-fiscal-cu-sua-si-o-versiune-mai-restransa-a-sistemului-comun-de-taxare-a-companiilor