Common Consolidated Corporate Tax Base (CCCTB)

CCCTB should aim to eliminate tax obstacles in the Single Market. The European Commission’s current approach largely fails to achieve this aim: abandoning two former core elements – voluntary application and a possibility to consolidate cross-border profits and losses – does not improve the framework for cross-border business activity in the Single Market.

What is at stake?

With its amended CCCTB proposal presented in June 2015, the European Commission wants to harmonise taxation in the single market and at the same time limit tax optimisation constructions. This would make the framework conditions for corporate taxation uniform across Europe without preventing tax competition between locations via tax rates.

Priorities of German Business

The conditions set by the tax system for companies in the EU must be competitive at a global level. This is a central precondition for the creation of jobs, continuous growth and prosperity for EU citizens.

This presupposes a level playing field with third countries such as the USA, hence the need to coordinate the European initiative for fair corporate taxation closely with the OECD/G20 level and not to go beyond the decisions taken there.

German business supports fair tax competition in the EU. But this means that national tax laws with a cross-border impact must not lead to double taxation.

CCCTB can help to counter this. But it must not lead to an increase in the tax burden for European companies. Accordingly, companies need the right to choose whether they want to apply this provision.

Tax discrepancies: a comparison of nominal and effective tax rates in selected EU countries, in %


CCCTB harmonises the tax base. As a result, it would in future no longer be possible to reduce the eff ective tax paid where rates are high through generous arrangements for calculating profi t (example: Italy) and to increase the eff ective tax burden where tax rates are low through strict rules on calculating profi t (example: United Kingdom). The relation of nominal and eff ective tax rates would be the same in all EU countries.

Source: Bundesverband der Deutschen Industrie (BDI), 2014