Brussels Rewrites the Tax Rulebook: Inside the EU's Tax Omnibus
On 24 June 2026, the European Commission adopted its Tax Simplification Package, pairing a recast Directive on Administrative Cooperation with a direct taxation Omnibus that touches almost the entire EU corporate tax acquis outside Pillar Two. Beyond the headline €7.9 billion compliance savings, the draft proposes phased abolition of intra-group withholding taxes, a new EU-wide R&D allowance, defence and infrastructure carve-outs from interest limitation rules, and a simplified CFC regime. Because both files require unanimous Council approval, the most revenue-sensitive provisions are also the most likely to be renegotiated, so CFOs and treasurers should engage now, not after the architecture is fixed.
On 24 June 2026, the European Commission adopted its Tax Simplification Package, pairing a recast Directive on Administrative Cooperation with a direct taxation Omnibus that touches almost the entire EU corporate tax acquis outside Pillar Two. Beyond the headline €7.9 billion compliance savings, the draft proposes phased abolition of intra-group withholding taxes, a new EU-wide R&D allowance, defence and infrastructure carve-outs from interest limitation rules, and a simplified CFC regime. Because both files require unanimous Council approval, the most revenue-sensitive provisions are also the most likely to be renegotiated, so CFOs and treasurers should engage now, not after the architecture is fixed.