ETAF calls for stronger protection of professional secrecy for tax advisers in EU law
On 23 October 2025, ETAF published a position paper stressing the vital importance of protecting professional secrecy for tax advisers in EU law. Professional secrecy is a cornerstone of the trust between clients and their advisers, ensuring that citizens and businesses can seek expert tax guidance in full confidence that sensitive information remains protected. ETAF warns that recent EU reporting obligations, ECJ rulings and inconsistent national interpretations threaten this principle, risking unequal treatment across professions and undermining taxpayers’ rights and fair competition. To prevent this, ETAF calls on EU institutions and Member States to explicitly enshrine professional privilege for tax advisers in EU legislation with a clear and consistent definition recognising their equal standing with lawyers and accompanied by accurate translations across all EU languages, harmonise its application across the EU, ensure proportionality in new reporting rules and acknowledge the key tax compliance role of regulated tax advisers.
Save-the-date: ETAF Professional law conference in cooperation with MEP Maria Grapini on 9 December 2025
The European Tax Adviser Federation (ETAF), in cooperation with MEP Maria Grapini, is pleased to invite you to join leading voices from the European Parliament, the European Commission, Member States, academia and the tax profession for an open and forward-looking exchange on what lies ahead for the Single Market for services and how the tax profession should prepare.
European Commission unveils its 2026 Work Programme
On 21 October 2025, the European Commission presented its 2026 Work Programme, entitled “Europe’s Independence Moment”, to the European Parliament in Strasbourg. Several legislative initiatives of particular relevance to the tax profession are confirmed for 2026. These include a 28th corporate regime for innovative companies scheduled for the first quarter, a simplified omnibus proposal on taxation in the second quarter, a skills portability initiative in the third quarter and updated rules on shareholder rights in the fourth quarter. Evaluations of two key directives — the Shareholders’ Rights Directive and the Whistleblower Protection Directive — are also planned for the end of the year. Notably, the Commission proposes to withdraw several long-pending tax files that remain blocked in the Council of the EU. These include the 2013 proposal for a Directive implementing enhanced cooperation in the area of financial transaction tax (FTT), the 2021 proposal for a Directive laying down rules to prevent the misuse of shell entities for tax purposes (UNSHELL), the 2022 proposal for a Directive on a debt-equity bias reduction allowance and on limiting the deductibility of interest for corporate income tax purposes (DEBRA) and the 2023 proposal for a Directive on transfer pricing (TP).
EU leaders reaffirm commitment to the simplification agenda
During a meeting in Brussels on 23 October 2025, EU leaders reaffirmed in their conclusions their strong commitment to advancing an ambitious, cross-cutting simplification and better regulation agenda. Welcoming the progress achieved, they urged the Commission and co-legislators to accelerate work on all files with simplification or competitiveness dimensions. The European Council called for the swift adoption of further omnibus packages on sustainability reporting, due diligence, small and mid-cap enterprises and digitalisation. It also invited the Commission to propose, without delay, an optional 28th company law regime to help innovative firms scale up. Emphasising the need to avoid over-regulation and excessive administrative burdens, especially on SMEs, EU leaders endorsed a ‘simplicity by design’ approach and urged legislative self-restraint. Finally, it asked the Commission to identify further opportunities to simplify and boost competitiveness, streamline planning and permitting procedures, intensify efforts on delegated and implementing acts, and consider withdrawing proposals where appropriate.
EU strengthens tax cooperation with Switzerland
On 20 October 2025, the European Commission signed an amending protocol enhancing the existing tax cooperation agreement with Switzerland. This update is a necessary step to ensure further alignment with the EU Directive on Administrative Cooperation (DAC) and with OECD standards. It expands the automatic exchange of financial account information between the EU and Switzerland to include electronic money products and digital currencies, while providing for strengthened due diligence and reporting requirements. The amending protocol also establishes a new framework for cooperation between the EU and Switzerland on the recovery of claims in the field of value-added tax and commits the parties to explore mutual assistance in recovering other tax claims. Similar amending protocols with Andorra, Liechtenstein, Monaco and San Marino were signed last week.
European Commission launches seat selection process for the future EU Customs Authority
On 16 October 2025, the European Commission opened a call for applications to Member States wishing to host the future EU Customs Authority (EUCA). The European Parliament and the Council of the EU have begun legislative negotiations on the package that includes the proposal for a Regulation establishing the Union Customs Code and the EUCA. The co-legislators agreed on a set of criteria for selecting the location. These ensure that, given the nature of the Authority, the chosen site enables EUCA to fully perform its tasks and powers, attract and retain highly qualified and specialised staff, and provide appropriate training opportunities. The principle of geographical balance will also be taken into account in the selection process. Member States have until 27 November 2025 to submit their applications. According to media reports, France, Belgium, Bulgaria, Croatia, Italy, the Netherlands, Poland, Portugal and Spain are likely to express interest in hosting the Authority.
FISC Subcommittee to host public hearing on the role of VAT and data bias in combating period poverty
On 4 November 2025, from 09:00 to 10:30, the FISC Subcommittee will host a public hearing on "the role of VAT and data bias in combating period poverty". Experts will be invited to discuss how VAT policy can serve as a pragmatic tool to address affordability barriers and promote fairer treatment of essential goods. In particular, the hearing will look into whether menstrual products should be treated like other essential goods in that regard as well as into further best practices, such as zero VAT and free access schemes. Moreover, the hearing will investigate the relation between data biases and the disproportionate effect of VAT on menstrual products. This hearing takes place in the context of the Gender Equality Week 2025. The draft programme can be consulted here.
Brazil signs the OECD BEPS Convention
On 20 October 2025, Brazil signed the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention) at a ceremony in Paris, becoming the 106th jurisdiction to join the landmark agreement. The Convention, which now covers about 2 000 bilateral tax treaties, aims to strengthen global tax cooperation and curb treaty abuse, artificial avoidance of permanent establishments and hybrid mismatch arrangements. So far, 90 jurisdictions have ratified, accepted or approved the BEPS Convention, leading to the modification of over 1 600 treaties, with around 400 more to be amended once all signatories complete ratification.
