24 June 2026 10:26 UTC · European Commission · EU Commission Press Release · Source · Email X Link

European Commission announces tax simplification package for competitiveness

Key points

Simplify EU taxation to save an estimated EUR 8 billion annually
Recast DAC to streamline administrative cooperation and raise reporting thresholds

TL;DR

European Commission says it presents an ambitious package to simplify taxation rules and strengthen Single Market competitiveness, aiming to save an estimated EUR 8 billion annually.
European Commission says the Direct Taxation Omnibus will remove withholding tax barriers, simplify the interest limitation rule, and align rules with the global minimum tax (Pillar 2) while upholding safeguards against tax avoidance and evasion.
European Commission says the recast of the Directive on Administrative Cooperation (DAC) will replace nine legal texts with a single text, remove reporting obligations for low-value cross-border tax arrangements, increase the online sales reporting threshold to €3,000 per year, and improve information exchange and taxpayer identification.

Original text

European Commission - Speech [Check Against Delivery] Press remarks by Commissioner Hoekstra on the tax simplification package Brussels, 24 June 2026 Ladies and gentlemen, a very good afternoon, If there is one thing crystal clear to the Commission, it is that we need to advance our business climate. Businesses want action. Companies across the EU are calling for a regulatory environment that is simpler, faster, and smarter —one that enables them to thrive and makes the EU more competitive on the global stage. This is why, today, we are coming with an ambitious package to simplify taxation rules, reduce unnecessary burdens, and make the EU more attractive for investment and growth. We are talking here about saving an estimated EUR 8 billion every single year. This is about making taxation simpler. But if you zoom out, this is also about the competitiveness of our Single Market. Let me focus on the package on the table today, as Valdis has already discussed how this package fits with our simplification agenda. There are two proposals: First, the Direct Taxation Omnibus will modernise the EU's direct tax framework, making it simpler, more effective and better adapted to today's economic environment. But of course, we are upholding strong safeguards against tax avoidance and evasion. What does this mean in practical terms? We are removing withholding tax barriers and burdensome procedures for cross-border payments of interests, royalties, and dividends between companies in the EU. This will make it easier for businesses to invest and operate across the EU. Let me give you an example: a company paying royalties to its entity in another Member State will now be exempt from paying withholding tax on that cross-border payment within the EU. No more lengthy upfront procedures. No need to deal with complex, cumbersome refund procedures anymore that sometimes take years to complete. We're also helping businesses get the financing they need by simplifying and updating the interest limitation rule. Here again, examples are better. A company taking a bank loan to buy equipment, hire staff or invest in innovation will be able to deduct the full amount of interest. We're adapting the threshold to avoid unnecessary restrictions for smaller companies. We are also simplifying EU tax rules to reflect the global minimum tax (Pillar 2). These rules help stop profit shifting and in-scope multinational enterprises already face close scrutiny, and rightly so, from national tax authorities. For example, multinational enterprises within the scope of Pillar 2 will be relieved from applying rules related to low-taxed controlled foreign companies as both rules achieve mainly the same outcome. Second, on the recast of the Directive on Administrative Cooperation (DAC). The DAC is the main framework for the automatic exchange of information across the EU – in our experience, it's a critical instrument in the fight against tax fraud, evasion, and avoidance. The recast will clarify, simplify and improve the legal framework for administrative cooperation and exchange of information in the EU. We are taking very concrete measures. First, instead of having 9 different legal texts, we will have only one single text. Second, we are removing the obligation to report cross-border tax arrangements that are of limited value for tax administrations. Third, we are increasing the reporting threshold for online sales of goods. This is very concrete and directly impacts citizens. Imagine that you are selling second-hand baby clothes on an online platform. Before the recast, as soon as you sold 30 pairs or more of baby pyjamas, the platform had to report your information to the tax authorities. Now, the platform only has to do it once you sell items worth more than 3000 euro per year, which is a different type of benchmark. This is great news and good for the circular economy. We are improving the way the DAC works by ensuring that more information is shared and improving the identification of taxpayers. Taken together, these simplifications and improvements will make cooperation between tax authorities more effective, easier while ensuring that public resources are used more efficiently. Ladies and gentlemen, In our view, today's simplification package sends a clear message: Europe is serious about competitiveness, making it easier for our businesses to grow, invest and succeed on its soil. This is an important step but certainly not the last. And we will continue with this endeavour. Thank you. SPEECH/26/1450 Press contacts: Louise BOGEY (+32 2 29 69776) Bridget MOYLAN (+32 2 29 82844) General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email

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