#Europe

2021-05-20

Future-proof taxation – Commission proposes new, ambitious business tax agenda

The European Commission has today adopted a Communication on Business Taxation for the 21st century to promote a robust, efficient and fair business tax system in the European Union. It sets out both a long-term and short-term vision to support Europe's recovery from the COVID-19 pandemic and to ensure adequate public revenues over the coming years.

It aims to create an equitable and stable business environment, which can boost sustainable and job-rich growth in the EU and increase our open strategic autonomy. The Communication takes account of the progress made in the G20/OECD discussions on global tax reform.

First, the Commission will present by 2023 a new framework for business taxation in the EU, which will reduce administrative burdens, remove tax obstacles and create a more business-friendly environment in the Single Market. The “Business in Europe: Framework for Income Taxation” (or BEFIT) will provide a single corporate tax rulebook for the EU, providing for fairer allocation of taxing rights between Member States. BEFIT will cut red tape, reduce compliance costs, minimise tax avoidance opportunities and support EU jobs and investment in the Single Market. BEFIT will replace the pending proposal for a Common Consolidated Corporate Tax Base, which will be withdrawn. The Commission will launch a broader reflection on the future of taxation in the EU, which will culminate in a Tax Symposium on the “EU tax mix on the road to 2050” in 2022.

Second, today's Communication also defines a tax agenda for the next two years, with measures that promote productive investment and entrepreneurship, better safeguard national revenues, and support the green and digital transitions. This builds on the ambitious roadmap set out in the Tax Action Plan, presented by the Commission last summer. Measures will include:

• Ensuring greater public transparency by proposing that certain large companies operating in the EU publish their effective tax rates. The abusive use of shell companies will also be tackled through new anti-tax avoidance measures;

• Supporting the recovery by addressing the debt-equity bias in the current corporate taxation, which treats debt financing of companies more favourably than equity financing. This proposal will aim to encourage companies to finance their activities through equity rather than turning to debt.

Third, the Commission has adopted today a Recommendation on the domestic treatment of losses. The Recommendation prompts Member States to allow loss carry-back for businesses to at least the previous fiscal year. This will benefit businesses that were profitable in the years before the pandemic, allowing them to offset their 2020 and 2021 losses against the taxes they paid before 2020. This measure will particularly benefit SMEs.

Background

Today's Communication is part of a wider EU tax reform agenda for the coming years. In addition to the corporate tax reforms set out in the Communication, the Commission will soon present measures to ensure fair taxation in the digital economy. The Commission will propose a digital levy, which will serve as an EU own resource. The Commission will also soon come forward with a review of the Energy Taxation Directive and the Carbon Border Adjustment Mechanism (CBAM), in the context of the “FitFor55” package and European Green Deal.

Members of the College said:

Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, said: “Taxation needs to keep up to speed with our evolving economies and priorities. Our tax rules should support an inclusive recovery, be transparent and close the door on tax avoidance. They should also be efficient for businesses big and small. Today's Communication will set the foundations for a corporate tax system in Europe that is fit for the 21st century, helping us to build a fairer and more sustainable society.”

Paolo Gentiloni, Commissioner for Economy, said, “It's time to rethink taxation in Europe. As our economies transition to a new growth model supported by NextGenerationEU, so too must our tax systems adapt to the priorities of the 21st century. The renewal of the transatlantic relationship offers an opportunity to make decisive progress towards a global tax reform. We must work to seize that opportunity, while ensuring that an international agreement protects Europe's key interests. Today we set out how a global deal will be implemented in the EU - and the other steps we will take over the coming three years to increase tax transparency and help businesses small and large to recover, grow and invest.”

“Production is a product”

From technical textiles and AI-driven robotics to the limitations of textile circularity: Professor Dr Thomas Gries looks back on more than two decades of development at ITA Aachen. In the interview, he explains why production technology remains a decisive success factor, discusses international collaborations and innovation ecosystems, and shares his views on the transformation of production landscapes and the challenges facing an increasingly regulated industry.

“We need to move away from the price trap and return to a value-driven mindset.”

With its new Textile Innovation Center, KARL MAYER is sending a strong signal for innovation, collaboration, and the future of textile applications. In this interview, Karl Josef Mayer discusses new opportunities in warp knitting, the processing of staple fibres, recycling, the changing role of machinery manufacturers, and why the textile industry must once again focus more strongly on the value of textiles. by Oliver Schmidt

“Innovation, resilience and international experience remain the great strengths of the Swiss textile machinery industry”

Geopolitical uncertainty, growing competitive pressure from China, new free trade agreements and the shift towards a circular economy are currently reshaping the global textile industry. In this interview, Cornelia Buchwalder discusses the current mood within the Swiss textile machinery sector, the industry’s distinctive innovative strength, new market opportunities in India and Asia, and the technological trends that could shape the upcoming trade fair cycle leading up to ITMA 2027.

European textile industry calls for €10 handling fee on ultra-fast-fashion imports

The introduction of the €3 customs duty on low-value imports marks an important milestone in Europe’s efforts to address the challenges created by the rapid growth of ultra-fast-fashion imports. Together with the abolition of the €150 customs duty exemption, it demonstrates that policymakers are willing to act when market distortions become impossible to ignore. However, the European textile and clothing industry considers this a first step rather than the final destination.

EU ban on destroying unsold clothing and footwear now in force

The European Union's ban on the destruction of unsold clothing, clothing accessories and footwear has entered into force. Since July 19, 2026, large companies across the EU have been prohibited from destroying unsold textile products, while medium-sized companies will be required to comply with the same rules from 2030.

Commission clarifies rules on plastic bottles recycling

The European Commission today adopted new rules on recycling of single-use plastic beverage bottles made primarily of polyethylene terephthalate (PET bottles). These rules establish, for the first time, a methodology to calculate, verify and report chemically recycled content. This is part of the Commission’s December 2025 plastics package.

Coats Digital launches AI-powered GSD RealMotion for motion analysis

Coats Digital has launched GSD RealMotion, an AI-powered solution designed to provide apparel manufacturers with greater visibility into factory-floor operations. By analysing shop-floor video and applying Coats Digital’s GSD methodology, the solution turns video recordings into structured, motion-by-motion method studies.

Archroma and Lameirinho partner in pioneering deployment of InOneGO single-step dyeing

Archroma, a global leader in specialty chemicals, and Lameirinho, a leading home textiles manufacturer based in Portugal, are collaborating to bring InOneGO by Archroma, a new single-step dyeing process, into commercial production. Lameirinho’s first InOneGo bedlinens collection is now available worldwide.

Reducing development times for technical textiles by accelerated thermo-oxidative aging in a high-pressure autoclave

Synthetic polymers used in technical textiles can be effectively protected against degradation caused by heat, oxygen, and water through the use of stabilizer systems. This enables service lives of several decades, extending to more than 50 years. As the use of durable technical textiles continues to grow, so does the demand for reliable methods to predict their service life within economically feasible testing periods. For the first time the German Institutes of Textile and Fiber Research Denkendorf (DITF) developed methods for robust service life prediction for textiles in an IGF research project.