European Commission unveils “EU Inc.” and broader 28th regime to simplify business operations
On 18 March 2026, the European Commission presented a package aimed at strengthening the Single Market for companies, centred on the creation of an optional EU-wide corporate framework (“EU Inc.”). The legislative proposal, in the form of a Regulation, establishes a harmonised limited liability company form available across all Member States, allowing businesses to incorporate under a single set of EU rules and operate cross-border without having to navigate multiple national legal systems. While the framework is open to all companies, it is primarily geared towards startups and scale-ups seeking to expand across the EU. The regime is designed to be digital-by-default, enabling incorporation within 48 hours, at a cost of less than €100 and with no minimum share capital requirement. It also introduces the “once-only” principle, allowing companies to submit information a single time via interconnected business registers and to obtain tax identification and VAT numbers automatically. Corporate procedures, including share transfers, capital increases and liquidation, are intended to be fully digital throughout the company lifecycle. In addition, the framework is linked to EU AML rules, notably by ensuring that company information collected during registration is automatically shared with beneficial ownership registers, thereby supporting the accuracy of data and compliance with Regulation (EU) 2024/1624. The proposal further includes measures to facilitate access to finance, such as flexible share structures, simplified capital rules and the use of modern financing instruments. A Commission Recommendation sets out common definitions of innovative enterprises, startups and scale-ups to support a more consistent application of policy measures, including tax-related incentives across Member States. From a tax perspective, article 79 of the proposal introduces a common EU framework for employee stock option plans, with taxation taking place at the moment of disposal, to enhance the attractiveness of EU companies for talent. In its accompanying Communication, the Commission outlines complementary initiatives, including in the field of taxation, notably the proposed Head Office Tax (HOT) system for SMEs and the forthcoming BEFIT initiative, aimed at reducing compliance burdens and improving coordination of corporate tax rules.
Main highlights from the 2026 EU Tax Symposium in Brussels
The 2026 EU Tax Symposium took place on 16-17 March under the theme “The future of taxation: inequality and growth in the global economy”. The programme covered a broad range of topics, including the future of international tax cooperation, the implementation of global tax reforms and the need to adapt tax systems to digitalisation and structural economic shifts. In his keynote speech, OECD Secretary-General Mathias Cormann reaffirmed the continued importance of multilateral tax cooperation and highlighted the OECD’s ongoing work on global tax standards, including the implementation of the OECD/G20 tax deal and efforts to reduce complexity and compliance burdens. Discussions throughout the symposium reflected this perspective, with participants examining the EU’s position between continued reliance on international cooperation and a more autonomous approach to taxing digital activities. Further panels focused on the future of Pillar Two and the evolving “side-by-side” approach to global minimum taxation, underlining the importance of ensuring effective implementation while maintaining simplicity and legal certainty. More broadly, speakers emphasised the need to simplify tax frameworks, reduce fragmentation across Member States and support investment through more coordinated tax policies. The symposium also addressed the role of taxation in tackling inequality and improving the overall tax mix, as well as the increasing use of data and digital tools in tax administration. The event concluded with a closing speech by Commissioner Wopke Hoekstra, who reiterated ongoing EU priorities, including VAT reform, CBAM and further simplification efforts, while stressing the importance of a coherent and forward-looking tax framework capable of supporting both competitiveness and fairness across the Single Market. The full event can be watched again here.
MEPs request assessment of EU revenue implications of updated global tax rules
On 16 March 2026, the Socialists and Democrats (S&D) Group in the European Parliament sent a letter to European Commissioner for Taxation Wopke Hoekstra requesting clarification on the economic impact of the side-by-side system (SbS) agreed on 5 January 2026, which exempts US multinationals from key elements of the global minimum tax (GMT) framework. The original agreement reached on 8 October 2021 under the OECD/G20 Inclusive Framework, introduced a 15% minimum effective corporate tax rate and was expected to generate significant additional revenues, estimated at around €64 billion annually for the EU. According to the S&D Group, the revised SbS Regime risks weakening the effectiveness of the global minimum tax by excluding US-based companies from certain minimum taxation rules. The letter calls on the Commission to provide a transparent assessment of the potential revenue losses for EU Member States and to disclose any available data or analysis. The S&D Group also raised concerns about the potential impact on the level playing field and the risk of renewed harmful tax competition, including possible shifts in corporate investment and profit allocation. In this context, Members of the European Parliament emphasised the need for the EU to consider alternative approaches to ensure fair taxation, particularly in the digital economy, and to maintain its commitment to international tax cooperation.
European Commission study assesses welfare effects of global minimum tax
On 17 March 2026, the European Commission’s Joint Research Centre (JRC) published a working paper providing a quantitative assessment of the economic and welfare implications of the global minimum tax (GMT), introduced as part of the OECD/G20 Inclusive Framework agreement on Pillar Two on 8 October 2021 to address harmful tax competition and profit shifting by multinational enterprises. Using a multi-country macroeconomic model covering the EU, the United States, the United Kingdom, Japan and a representative tax haven, the study finds that the introduction of a 15% minimum effective corporate tax rate is expected to increase corporate tax revenues and reduce profit shifting, while resulting in mixed welfare effects across countries and a slightly positive impact at the global level. The analysis highlights that outcomes depend on how additional corporate income tax revenues are used, with more broadly positive effects observed when revenues are recycled through lower corporate tax rates, provided the minimum rate is maintained, compared to redistribution to households. The study also examines scenarios reflecting the non-participation of the United States and finds that overall welfare and macroeconomic outcomes remain largely unchanged, suggesting limited sensitivity to such design features. In addition, the paper explores alternative minimum tax rates, identifying a rate of around 16% as yielding the highest level of global welfare within the model framework.
European Commission launches consultation on the European Business Wallet to streamline digital compliance
The European Commission has launched a public consultation on the proposed Regulation establishing a European Business Wallet, aimed at simplifying digital business operations and compliance across the EU. The consultation seeks feedback from stakeholders on the proposed framework, including its design, functionalities and expected impacts. The proposal introduces a harmonised digital infrastructure enabling economic operators to securely identify themselves, share verified credentials and receive legally recognised notifications across the EU through a single interoperable system. From a tax and compliance perspective, the Business Wallet is expected to streamline interactions with public administrations, including procedures such as VAT registration, reporting obligations and the exchange of tax-related attestations, while supporting broader digitalisation initiatives such as the VAT in the Digital Age (ViDA) package. By reducing fragmentation and enabling secure, standardised data exchange, the initiative aims to lower administrative burdens, improve compliance processes and facilitate cross-border business activity, particularly for SMEs. The deadline for submitting feedback runs until 6 May 2026.
European Parliament discusses revision of EU excise duty rules on tobacco products
On 19 March 2026, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) held an exchange of views on the proposed revision of Directive (EU) 2020/262 concerning the general arrangements and structure of excise duties on tobacco and tobacco-related products. Rapporteur Tomáš Kubín (PfE, Czechia) presented his draft report, proposing a more gradual and flexible approach compared to the European Commission’s proposal, including a one-year extension of the transition period and lower minimum tax rates. He emphasised the need to balance public health objectives, revenue generation and the functioning of the Single Market, warning that excessively high tax rates could contribute to the expansion of illicit trade. Several political groups, including EPP and ECR members, expressed support for differentiating between traditional tobacco products and newer, potentially lower-risk products, as well as for maintaining flexibility for Member States. In contrast, S&D representatives criticised the rapporteur for lowering the ambition of the Commission’s proposal, particularly regarding minimum tax rates and the implementation timeline. The European Commission reiterated that the revision aims to address market distortions, update minimum rates in light of inflation and extend the scope of the Directive to new tobacco-related products, while noting that there is no direct correlation between higher tax rates and illicit trade. The deadline for amendments to the report was set for 13 April 2026.
OECD Global Forum launches fifth edition of Women Leaders in Tax Transparency Programme
The Global Forum on Transparency and Exchange of Information for Tax Purposes launched the fifth edition of its “Women Leaders in Tax Transparency” (WLiTT) programme, building on its broader capacity-building strategy, which since 2011 has aimed to support jurisdictions in implementing international tax transparency standards while addressing gender gaps in tax administrations. The programme, which runs from March to November 2026, combines technical training and leadership development through five virtual sessions over nine months, covering key aspects of tax transparency and the effective implementation of exchange of information (EOI) standards, including the practical use of EOI tools, confidentiality requirements, and the role of tax auditors and third parties, as well as the transfer of knowledge to support the modernisation of revenue mobilisation processes and updates on international tax developments. In parallel, participants benefit from dedicated mentorship sessions with senior female experts and targeted leadership training, with a strong focus on peer learning and network-building. The 2026 edition will bring together 20 to 25 participants from developing country members of the Global Forum, contributing to a growing global network of women professionals in tax transparency, which already includes over 90 participants from previous editions. The initiative reflects the Global Forum’s continued commitment to promoting female leadership, enhancing diversity in decision-making and strengthening international cooperation in tax transparency.
Nepal joins OECD Global Forum as 173rd member
On 18 March 2026, Nepal joined the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes as its 173rd member and 24th member from Asia, marking a further expansion of the international network committed to combating tax evasion and strengthening tax transparency. As a member, Nepal will participate on an equal footing with other jurisdictions and has committed to implementing the internationally agreed standards on exchange of information on request (EOIR) and automatic exchange of information (AEOI), including those relating to financial accounts under the Common Reporting Standard (CRS) and crypto-asset transactions under the Crypto-Asset Reporting Framework (CARF). Membership also provides access to the Global Forum’s induction programme, a multi-year capacity-building initiative designed to support new members in effectively implementing these standards and strengthening domestic tax administration. The Global Forum, which includes all G20 and OECD countries as well as numerous developing jurisdictions and international financial centres, continues to play a central role in monitoring compliance through peer review processes and in promoting international cooperation in tax matters.
