BStBK backs EU tax omnibus but demands application from 2029

The European Commission proposed on 24 June 2026 to simplify the EU framework for direct taxesBstbk and strengthen competitiveness, COM(2026) 560 final, 2026/0163 (CNS). The draft Council directive would amend the Interest and Royalties Directive (2003/49/EG), the Merger Directive (2009/133/EG), the Parent-Subsidiary Directive (2011/96/EU), the Anti-Tax-Avoidance Directive (ATAD) (EU) 2016/1164, the Dispute Resolution Directive (EU) 2017/1852 and the FASTER Directive (EU) 2025/50. The Bundessteuerberaterkammer (BStBK) welcomed the package in its Stellungnahme 51/2026 of 5 November 2026 as a course correction toward simplification, while urging faster application and warning against re-tightening through national opening clauses.

For interest and royalty payments between companies in different Member States, the minimum participation requirements for withholding relief would disappear, so payments between unrelated companies could also be exempt. The two-year minimum holding option in Art. 1 Abs. 10 ZLRL would fall away. Taxpayers would self-assess at the time of payment without prior approval; ex-post audits and anti-abuse rules remain. Payments linked to publicly traded securities would use the accelerated FASTER procedures. A new subject-to-tax backstop would apply only to payments to recipients in third states with no corporation tax or a nominal zero rate, obliging the source state to levy withholding tax or deny the deduction. Groups within the global minimum tax are to be carved out.

For parent-subsidiary dividends, the 10% minimum holding and the up-to-two-year holding period would disappear, extending exemption and double-tax relief to portfolio holdings below 10%. The exemption would extend to Altersversorgung institutions regardless of legal form. Cost deduction denial would survive only for holdings of at least 10%. Refunds would follow uniform minima: an application period of at least two years, repayment within one year of a complete claim, with interest on late payment.

On ATAD, the interest barrier would fix the 30% of tax EBITDA limit as mandatory, make the EUR 3 million allowance compulsory and index it, exempt low-risk third-party debt for own activities, allow full deduction when EBITDA falls by at least 50% year on year, and make group escapes and unlimited carryforward compulsory. Controlled foreign company rules would move to Model A only, with a mandatory exception for groups within Directive (EU) 2022/2523 and a full carve-out for small and medium-sized enterprises, and imported hybrid mismatches would be deleted. Cross-border conversions, divisions and simplified mergers would enter the Merger Directive.

Dispute cases with several affected persons could be filed in each residence state within 30 calendar days of the first filing inside the three-year period, with a 30-day cure period and suspension rather than termination of parallel proceedings. Member States are to transpose by 31 December 2028 for general application from 1 January 2029, but core withholding, parent-subsidiary and related reliefs would apply only from 1 January 2037. The BStBK calls the 2037 delay incompatible with competitivenessBstbk, demands uniform application from 1 January 2029Bstbk and unanimous Council agreement without new anti-abuse clauses, and insists Member States not use the Art. 3 ATAD minimum standard to keep stricter national rules.

Legal basis is the Commission proposal COM(2026) 560 final for a Council directive amending Directives 2003/49/EG, 2009/133/EG, 2011/96/EU, (EU) 2016/1164, (EU) 2017/1852 and (EU) 2025/50, as assessed in BStBK Stellungnahme 51/2026 of 5 November 2026.