EU pilot scheme aims to remove ‘tax complications’ for small firms

SMALL companies with branches in other EU member states could compute their company tax according to the rules of their home country following a proposal adopted by the European Commission.

The scheme will be on a voluntary basis and for a limited time as a pilot project but the Department of Finance said it will not be participating.

Ireland is threatening to veto a pan-European corporate tax rate on the basis it interferes with national sovereignty. It has one of the lowest corporate tax rates in the EU.