Our statement outlines key recommendations the Commission should prioritise following the report’s adoption
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This non-binding Recommendation effectively provides a blueprint for how to design national Savings and Investment Account (SIA) regimes aimed notably to foster retail investment. It also contains advice and indications on the design of the tax treatment and incentives for SIAs.
Earlier this year, Accountancy Europe also published its recommendations for the tax treatment of such investment accounts.
The EC’s VAT Expert Group (VEG), a key stakeholder advisory group, will continue to support the EC’s work on VAT policy under a new mandate running from 2025 to 2028.
The group’s composition has been cut by five in comparison to previous mandates. It seems that more technology companies have been appointed, whilst the European umbrella organisations representing tax professionals have been excluded for the first time.
The EC has put forward a proposal for a Recommendation to the Council to be authorised to negotiate at the United Nations (UN), with a view to reaching agreement on the Second Early Protocol to the UN Framework Convention on International Tax Cooperation, as reported by Agence Europe.
This proposal for a Recommendation aims to ensure that the EU is properly involved in these negotiations, given that they are expected to deal with issues falling within the Union’s competence in the field of taxation.
The EU signed on 20 October an amending protocol to reinforce its existing tax cooperation agreement with Switzerland.
The amending protocol expands the automatic exchange of financial account information, in line with the updated Common Reporting Standard (CRS) agreed at international level. This update includes specific electronic money products and central bank digital currencies, ensuring that tax authorities have comprehensive access to relevant financial data.
Additionally, the protocol strengthens due diligence and reporting requirements, facilitating more effective use of information by tax administrations while limiting burdens on financial institutions.
The amending protocol also establishes a new framework for cooperation on the recovery of VAT claims and commits both parties to explore mutual assistance in recovering other tax claims, further enhancing tax cooperation.
The EC published its 2026 Work Programme on 21 October. The document outlines the initiatives it plans to bring forward in the coming year, as well as a list of existing legislative proposals that it intends to withdraw.
In the area of taxation, the key new announced initiative is the so-called tax omnibus, scheduled for the second quarter of 2026. This initiative will aim to reduce compliance burdens and cut unnecessary or duplicate administrative requirements across major pieces of EU tax legislation.
At the same time, the EC will withdraw four existing tax proposals:
While these annual Work Programmes offer useful insight into the EC’s priorities, they are not exhaustive. New initiatives may still be proposed during the year, even if they do not appear in the current plan.
The European Parliament (EP) Plenary adopted its position on simplifying EU tax legislation, with 499 votes in favour, 66 against and 53 abstentions. The report was led by MEP Michalis Hadjipantela (EPP/Cyprus).
It sets out the EP’s recommendations for simplifying EU tax legislation ahead of the EC’s tax omnibus expected for 2026 (see article above about EC’s 2026 Work Programme).
To mark the adoption of the report, Accountancy Europe published a public statement indicating the recommendations we believe the EC should particularly take note of. These include improving the VAT system’s functioning and reducing complexity, re-visiting the DACs in light of new developments, exploring equivalence between EU’s public tax reporting rules and international standards, and more.
The EP’s FISC Committee held an Interparliamentary Committee Meeting (ICM) dedicated to the taxation of digital activities at both national and international levels. The session brought together a panel of speakers and representatives of national parliaments and governments.
During the hearing, Benjamin Angel, Director at the Commission’s DG TAXUD, reiterated the importance of multilateral solutions for taxing the digital economy, and warned that national digital services taxes (DSTs) risk creating double taxation and trade retaliation. On the other hand, Marco Iuvinale and Maria José Garde from the Italian and Spanish Ministries of Finance, respectively, highlighted the need for interim national measures such as DSTs, while reaffirming that global coordination under the OECD should remain the long-term goal.
Overall, participants cautioned that fragmented, revenue-based approaches risk distorting competition and called instead for profit-based solutions and harmonised corporate tax frameworks. The speakers widely agreed that taxation must evolve to capture digital activity without hindering innovation or overburdening small businesses. The OECD’s Pillar One negotiations were identified as the central pathway for achieving fair international tax allocation, though delays risk prolonging unilateral national measures.
National representatives shared experiences from Spain, Italy, France, and Portugal, reporting that DSTs have generated moderate revenue and public trust but should be viewed as temporary instruments. Smaller Member States emphasised the importance of maintaining fiscal autonomy and flexibility within a common EU framework.
Several participants also underlined the need for transparency, data-driven policymaking, and clearer public communication to strengthen legitimacy and compliance.
EU Finance Ministers in the Council updated the EU list of non-cooperative tax jurisdictions. No new jurisdictions were added to Annex I, which continues to include 11 jurisdictions: American Samoa, Anguilla, Fiji, Guam, Palau, Panama, Russian, Samoa, Trinidad & Tobago, US Virgin Islands, and Vanuatu. The update highlights a number of positive developments in some of these jurisdictions, reflecting ongoing efforts to address areas of concern.
Changes were made to the state of play document (Annex II), which tracks ongoing EU cooperation with international partners. Its purpose is to recognise ongoing constructive work in the field of taxation, and to encourage the positive approach taken by cooperative jurisdictions to implement tax good governance standards. Viet Nam was removed from Annex II after taking the necessary steps to ensure compliance with the implementation of BEPS minimum standards on Country-by-Country Reporting. Five jurisdictions made new formal commitments to address deficiencies in tax transparency and Country-by-Country reporting, bringing the total number of jurisdictions in Annex II to 11.
European Commission
EU strengthens international tax cooperation with Andorra, Liechtenstein, Monaco and San Marino
Oxfam
Oxfam publishes report on wealth taxation and inequalities in the EU
European Commission
Commission publishes study titled Taxing Bank Windfall Profits: Lessons from the Baltics
European Commission
Commission study on barriers to venture capital in the EU identifies tax barriers as one of the most significant ones
Tax Foundation
New study on compliance costs of Pillar 2 published
