Taxation: Commission proposes package to simplify tax rules and strengthen the Single Market

The European Commission has adopted a tax simplification package aimed at reducing administrative burdens for businesses, modernising the EU’s direct tax framework and strengthening the competitiveness of the Single Market. The package consists of two legislative proposals - the Taxation Omnibus and the recast of the Directive on Administrative Cooperation (DAC) - and is expected to generate annual savings of around €8 billion for EU businesses, including €3.3 billion in reduced administrative costs. Key measures include simplifying withholding tax procedures for cross-border payments, reducing reporting obligations for businesses and digital platforms, streamlining overlapping tax rules and enhancing administrative cooperation between Member States. The proposals will now be submitted to the European Parliament for consultation and to the Council for adoption.