European Commission Mulls One System for Taxing Multinationals

The European Commission will float new plans to create one corporate tax system across the EU to put a stop to countries offering more favorable tax deals for multinational companies, according to a document seen by Bloomberg.

The approach would be a dramatic departure from how multinationals’ profits are currently taxed in the EU, with much of a company’s profits assigned to jurisdictions where it holds intellectual property or undertakes important business functions.

The document, obtained by Bloomberg on Friday, is a draft communication from the European Commission on a series of proposed changes to business taxation and will serve ...