Changes from report parliamentary committee draft to plenary report

AddedArticle 19 – paragraph 1 – subparagraph 1 a (new): The report referred in the first subparagraph of this paragraph shall also evaluate the possible extension of the scope of this Directive, in particular to other companies referred to in Article 3(5) and (6) of Directive 2013/34/EU, the adequacy of the eligibility requirements laid down in Article 4 of this Directive in view of adhesion of SMEs to the head office taxation rules and, in particular, the appropriateness of the requirement related to the joint turnover of the permanent establishments and/or subsidiaries. The report shall also evaluate the appropriateness of the criteria laid down in Article 10 of this Directive, namely the exclusion of SMEs that have more than two subsidiaries, and the adequacy of the exclusion of the shipping activities laid down in article 5 of this Directive. The report shall also assess if and how the procedures laid down in this Directive can be further streamlined to reduce compliance costs and if there are lessons to be learnt from the application of this Directive for corporate taxation in general.

AddedArticle 19 – paragraph 2: 2. Member States shall communicate to the Commission relevant information for the evaluation of the Directive, in accordance with paragraph 3, including aggregated data regarding the number of eligible SMEs compared to SMEs that opted in, their turnover and compliance costs relative to turnover; data on the number of SMEs that expanded cross-border by setting up a permanent establishment and the number of SMEs that disqualified due to creating more than two subsidiaries, or the compliance costs for SMEs that apply the option.

AddedArticle 19 – paragraph 2 a (new): 2a. The Commission shall evaluate potential legal obstacles in applying this Directive such as the lack of a common and harmonised definition of permanent establishments and subsidiaries in the Union, taking into account international standards.

AddedArticle 20 – paragraph 1 – subparagraph 1: By 31 December 2024, the Member States shall adopt and publish the measures necessary to comply with this Directive. They shall immediately inform the Commission thereof.

Article 20 – paragraph 1 – subparagraph 2: They shall apply those measures from 1 January 2025.