Taxation Omnibus, presented by the Commission earlier this week, is a policy initiative to reduce administrative burdens for businesses and taxation authorities.

The Proposal introduces key measures, including an exemption from withholding tax, simplification of the interest limitation rule, and removal of overlapping provisions between the Controlled Foreign Company rules and Pillar Two.

Despite the urgency, provisions on withholding taxation could be implemented as late as 2037, and, even worse, this ambitious approach could fall into the same trap and stall as the recast of the Energy Taxation Directive.

First reactions from businesses and members of Parliament have been mostly positive, with political debate on the package expected to intensify in the coming weeks.

In this guide, you can find a detailed analysis of the context of the package and the next steps for the Proposal.