European Commission publishes first Omnibus packages
The European Commission has released its first two so-called Omnibus packages (Omnibus I and Omnibus II) of simplification measures on Wednesday 26 March, which aim at simplifying EU rules, boost competitiveness, and unlock additional investment capacity. The packages include amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Adjustment Mechanism (CBAM), and the InvestEU Regulation. The proposed changes aim to simplify sustainability reporting by exempting 80% of companies from CSRD, postponing reporting deadlines, and reducing administrative burdens, particularly for SMEs. In sustainability due diligence, requirements will be streamlined by focusing on direct business partners, reducing assessment frequency, and removing EU civil liability conditions while ensuring compensation rights. The Carbon Border Adjustment Mechanism (CBAM) will be simplified by exempting small importers and refining rules for companies in scope, while also strengthening anti-circumvention measures. Additionally, investment programmes like InvestEU will be optimized to increase funding capacity, support priority policies, and reduce administrative costs. The Omnibus simplification package is accompanied by a draft Delegated act amending the Taxonomy Disclosures, the Taxonomy Climate and Environmental Delegated Acts. It aims to make them simpler and more cost-effective for companies, by making certain requirements more flexible and reducing the amount of data to be provided. The initiative aims to help balance EU environmental goals with business competitiveness. The draft Delegated act is subject to a public consultation, which is open until 26 March 2025. The legislative proposals will now be submitted to the European Parliament and the Council for their consideration and adoption.
FISC delegation visits Helsinki and Tallinn to discuss global tax challenges
From 25 until 27 February, a delegation of the FISC Subcommittee on Tax Matters travelled to Helsinki and Tallinn. The delegation – consisting of Regina Doherty (EPP, IE), Pierre Pimpie (PfE, FR) and Jussi Saramo (The Left, FI) – met with representatives of key institutions, such as Finland and Estonia’s Finance Ministers, Members of the National Parliaments, representatives of tax authorities, and stakeholders from the private sector, trade unions, and civil society in order to discuss international tax issues and challenges. Following the visit, MEP Doherty pointed out that "the recent announcement by US President Trump to withdraw from the global tax deal puts a big pressure on EU countries regarding the implementation of the global minimum effective tax rate.” She further emphasised the need to support companies and economies across Europe. “It is time to review the EU’s legal framework in the area of taxation and identify areas where overlaps or ineffective measures can be remedied to reduce the administrative and regulatory burden on our companies”, MEP Doherty said.
OECD Secretary-General delivers his tax report to G20 Finance Ministers and Central Bank Governors
On Thursday 27 February, the OECD published the OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors. The report was prepared ahead of the first meeting of G20 Finance Ministers and Central Bank Governors under the South African G20 Presidency, which was held on 26-27 February 2025 in Cape Town, South Africa. The report sets out recent developments in international tax co-operation. Key findings of the report include significant progress on the implementation of Pillar Two, with 55 jurisdictions having enacted or introduced legislation for the global minimum tax. It also highlights the growing international commitment to tax transparency, with 66 jurisdictions agreeing to exchange information on crypto-assets by 2027 or 2028. Additionally, the report discusses measures to enhance tax certainty, including new administrative guidance on transfer pricing and the expansion of the mutual agreement procedure (MAP) to resolve tax disputes more efficiently. Additional progress on addressing base erosion and profit shifting (BEPS) was observed, particularly in the enhancement of country-by-country reporting requirements. Finally, the OECD underscores the role of digital transformation in tax administration, with efforts to automate reporting and improve compliance mechanisms globally.
OECD/G20 Inclusive Framework releases consolidated report on Amount B
The OECD/G20 Inclusive Framework on BEPS published a Consolidated Report on Amount B on Monday 24 February. Amount B provides for a simplified and streamlined approach to the application of the arm’s length principle to in-country baseline marketing and distribution activities, with a particular focus on the needs of low-capacity countries. This consolidated report contains the agreed materials on Amount B that have been released by the Inclusive Framework since February 2024 up until December 2024. The guidance in this report outlines the characteristics of in-scope distributors, which cannot, for example, assume certain economically significant risks or own unique and value intangibles. Moreover, certain activities may exclude a distributor from the scope, such as the distribution of commodities or digital goods. The simplified and streamlined approach provides a pricing framework whereby a 3-step process determines a return on sales for in-scope distributors. Finally, the report also provides guidance on documentation, transitional issues, and tax certainty considerations.
EU Tax Observatory annual conference: registration is now open
On 13 May 2025, the EU Tax Observatory will host its annual flagship event in Brussels. The EU Tax Observatory is a research laboratory dedicated to conducting, promoting, and disseminating innovative, high-quality, and impactful research on taxation. This year, the upcoming event will take place under the theme: Competition or Cooperation? EU Tax Policies for Tomorrow. The EU Tax Observatory brings together academics and leading policymakers discussing about changing forms of tax competition in corporate taxes, unfair tax competition driving tax progressivity down at the top as well as the role of tax enforcement in a competitive world. The full programme of topics and speakers can be viewed here. The event will take place in-person. Registration is now open.
