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<EU CORPORATE TAX: Real Estate Aspects

EU Common Consolidated Corporate Tax Base

The Commission has launched a two-step corporate tax package consisting of a Proposal for a Directive for a Common Corporate Tax Base (CCTB) and another for a Common Consolidated Corporate Tax Base (CCCTB). There are important provisions relating to real estate, inter alia:

  • Rules on depreciation of different kinds of buildings
  • Inclusion in the tax base of subsidies directly linked to the acquisition, construction or improvement of fixed assets
  • Rules on the degree of deductibility of acquisition, construction or improvement costs of fixed assets
  • Rented assets to be valued at eight times the net annual rent

At the EPF Managing Committee meeting on 28 October, the consensus was that this will be an important matter for real estate.

EPF Members: See epf16-103 of 26.10.2016, epf16-108 of 03.11.2016 and epf16-111 & 113 of 14.11.2016