European Commission publishes work program for 2025

One of the main goals of the work program is to boost the competitiveness of European businesses. In this area, the Commission plans to introduce a so-called 28th legal regime, which would provide a unified legal framework for businesses operating across the EU. This regime aims to simplify compliance and reduce administrative burdens, benefiting especially new and growing companies. Additionally, the Clean Industry Plan initiative is expected to support industrial competitiveness through decarbonization and the development of renewable energy sources.

Simplification of rules and effective implementation

The Commission plans to propose so-called Omnibus packages, aimed at reducing administrative burdens by 25% for all companies and by 35% for small and medium-sized enterprises. These omnibus packages are intended to address interactions between different parts of EU legislation and contribute to the simplification of rules in priority sectors.

Whilst the communication notes that the first two omnibus packages on “sustainability” and “investment simplification” are to be issued in the first quarter of 2025, it does not refer specifically to any direct tax measures.

Assessment of the Anti-Tax Avoidance Directive (ATAD)

This assessment aims to evaluate the effectiveness and efficiency of the directive and its alignment with other EU legislation. Stakeholders have been invited to provide feedback on the assessment, indicating the Commission's openness to dialogue and cooperation with member states and other stakeholders.

Existing proposals in the area of direct taxation

In the area of direct taxation, the program highlights several key proposals such as DAC9, BEFIT, the directive on transfer pricing, DEBRA, Unshell, and the digital services tax. These proposals aim to improve transparency, efficiency, and fairness of tax systems in the EU. The exchange of information on income tax in the EU (DAC9) and the framework for income taxation in Europe (BEFIT) are still under discussion and require unanimous approval in the Council. These proposals have the potential to significantly impact tax systems in the EU and contribute to their harmonization.

Withdrawn directive proposals

The work program also notes that some older proposals, such as the revised Interest and Royalties Directive (IRD), have been deemed outdated and withdrawn. The Commission plans to address remaining issues through the upcoming Omnibus law, which is part of a broader effort to simplify legislation.

Our KPMG EU Tax Centre have prepared a more detailed information in Euro Tax Flash, which provides further context.