Members of European Parliament (MEPs) have adopted two reports containing recommendations on reforming withholding taxes and simplifying tax systems.
MEPs adopted recommendations to prevent withholding tax regimes from facilitating tax avoidance, while also reducing barriers for companies and investors who operate cross-border.
MEPs have called for legislation to modernize tax systems to reduce tax evasion and avoidance and help SMEs, thereby making tax policy fit for the 21st century.
The withholding tax recommendations report was adopted by 625 votes in favor, 38 against and 28 abstentions. The simplification of tax systems report was adopted by 478 votes in favor, 78 against and 129 abstentions.