12 Amendments of Jonás FERNÁNDEZ related to 2022/0154(CNS)
Amendment 23 #
Proposal for a directive
Recital 2
Recital 2
(2) Member States’ tax systems allow the taxpayers to deduct interest payments on debt financing, and thereby reduce the corporate income tax liability, while costs related to equity financing are non-tax deductible in most Member States. The asymmetric tax treatment of debt and equity financing across the Union induces a bias towards debt in investment decisions. Moreover, where Member States provide for a tax allowance on equity financing in their domestic law, such national measures differ significantly in terms of policy design. By adopting this Directive, the Union answers the call by Parliament to address the tax-related debt-equity bias, including by reducing the interest deduction possibilities. 14a _________________ 14a Resolution of the European Parliament of 15 February 2022 on the impact of national tax reforms on the EU economy (2021/2074(INI)) (OJ C 342, 6.9.2022, p. 14).
Amendment 25 #
Proposal for a directive
Recital 3
Recital 3
(3) In order to remove possible tax related distortions among Member States, it is necessary to lay down a common framework of rules to address the tax related debt-equity bias across the Union in a coordinated manner. Such rules should ensure that equity and debt financing are treated in a similar way for tax purposes across the single market. At the same time, athe tax deductibility of debt and/or the creation of an allowance on increases in equity has a negative impact on public revenues. A common Union legislative framework should be sustainable also in the short term for Member States’ budgets. Such framework should therefore include rules, on the one hand, for the tax deductibility of equity financing costs and, on the other, for limiting the tax deductibility of debt financing costs.
Amendment 33 #
Proposal for a directive
Recital 5
Recital 5
(5) To neutralise the bias against equity financing, an allowance should be envisaged so that increases in a taxpayer's equity from one tax period to the next are deductible from its taxable base, subject to certain conditions. The allowance should be calculated by multiplying half of the increase in equity with a notional interest rate based on risk-free interest rate as laid down in the implementing acts adopted pursuant to Article 77e(2) of Directive 2009/138/EC. Such risk-free interest rates are already part of EU law and have been practically and effectively applied as such. Any part of the allowance that cannot be deducted in a tax period due to insufficient taxable profits may be carried forward. Taking into account the specific challenges that small- and medium-sized enterprises (SMEs) and medium sized groups face in accessing capital markets, an increasedthe allowance on equity should be envisagedwill only be accessible for taxpayers that are SMEs or medium sized groups, in order to compensate for the fact that their financing costs are higher, and the availability of capital is lower. In order for the deduction of an allowance on equity to be sustainable for public finances in the short term, it should be limited in time. To safeguard the system from abuses, it is necessary to exclude the tax value of a taxpayer's own shares as well as that of its participation in associated enterprises from the calculation of changes in equity. In the same vein, it is necessary to provide for the taxation of a decrease in a taxpayer’s equity from one tax period to the following one, to prevent an equity increase from being effected in an abusive manner. Such a rule would also encourage the retention of a level of equity. It would apply so that where there is a decrease in equity of a taxpayer that has benefitted from an allowance on equity increase, an amount calculated in the same way as the allowance would become taxable for 10 tax periods; unless the taxpayer provides evidence that this decrease is exclusively due to losses incurred during the tax period or due to a legal obligation.
Amendment 56 #
Proposal for a directive
Article 3 – paragraph 1 – point 5 b (new)
Article 3 – paragraph 1 – point 5 b (new)
(5 b) ‘Medium-sized group’ means all groups which do not exceed the threshold for medium-sized groups, as laid down in Article 3(6) of Directive 2013/34/EU;
Amendment 62 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1
Article 4 – paragraph 1 – subparagraph 1
An allowance on equity shall be deductible, for 105 consecutive tax periods, from the taxable base of a taxpayer for corporate income tax purposes, who is a SME or a medium-sized group, for corporate income tax purposes. The sum of the allowance and the deduction for interest rates is deductible up to 30% of the taxpayer's earnings before interest, tax, depreciation and amortisation (“EBITDA ”).
Amendment 66 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 2
Article 4 – paragraph 1 – subparagraph 2
Amendment 68 #
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 3
Article 4 – paragraph 1 – subparagraph 3
Amendment 74 #
Proposal for a directive
Article 4 – paragraph 2 – subparagraph 2
Article 4 – paragraph 2 – subparagraph 2
The allowance on equity shall be equal to half of the base of the allowance multiplied by the 10-year risk-free interest rate for the relevant currency and increased by a risk premium of 1% or, where the taxpayer is an SME, a risk premium of 1.5%.
Amendment 82 #
Proposal for a directive
Article 4 – paragraph 3
Article 4 – paragraph 3
3. If, after having obtained an allowance on equity, the base of the allowance on equity is negative in a tax period, an amount equal to the negative allowance on equity shall become taxable for 105 consecutive tax periods, up to the overall increase of net equity for which such allowance has been obtained under this Directive, unless the taxpayer provides sufficient evidence that this is due to accounting losses incurred during the tax period or due to a legal obligation to reduce capital.
Amendment 86 #
Proposal for a directive
Article 5 – paragraph 3
Article 5 – paragraph 3
3. Where an increase in equity is the result of a reorganisation of a medium- sized group, such increase shall only be taken into account for the calculation of the base of the allowance on equity for the taxpayer in accordance with Article 4 to the extent that it does not result in converting into new equity the equity (or part thereof) that already existed in the medium- sized group before the re- organisation.
Amendment 95 #
(b) the number of SMEs and medium- size groups that have benefitted from the allowance in the tax period, including as a percentage of the total number of SMEs and medium-sized groups falling within the scope of this Directive and the number of SMEs that have benefitted from the allowance, which are part of large groups within the meaning of Article 3(7) of Directive 2013/34/EU;
Amendment 109 #
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Member States may defer the application of the provisions of this Directive to taxpayers that on [1 January 2024] benefit from an allowance on equity under national law for a period up to 105 years and in no case for a period longer than the duration of the benefit under national law.