EU Mulls Exempting Small Businesses From Various Tax Rules

The European Commission is considering carving out small and medium-sized companies from many of the EU’s tax rules, including the interest limitation rule and the controlled foreign company rule.

The potential exemptions are “in line with the Commission’s overall objective to support small and medium enterprises (SMEs), including by reducing administrative costs and compliance burden,” the commission said in a document dated Oct. 14 shared with Bloomberg.

It suggested creating the carve-out either “through the exclusion of all SMEs from the aforementioned measures,” or by making mandatory safe harbors and exclusions that are currently optional in existing legislation. ...