Changes between two versions
What changed between the draft committee report and the plenary report
From · draft committee report· 19 Mar 2026
on the feasibility of a 28th tax regime and its potential to support EU competitiveness
To · plenary report· 10 Jun 2026
on the feasibility of a 28th tax regime and its potential to support EU competitiveness
AI:What changed, in short
The report now frames the 28th regime as a response to competitiveness challenges, referencing the Draghi and Letta reports and the 'One Europe, One Market' agenda.12 It introduces a detailed tax module with a single consolidated corporate tax base, formulary apportionment, and safeguards against abuse, while respecting Member States' tax sovereignty.3456 The text adds provisions on employee stock options, transfer pricing, and investor status to reduce cross-border barriers and attract talent.9101112 It strengthens the focus on capital markets and savings mobilisation, aiming to close the funding gap and prevent capital flight.13 The only formal change is the expansion of an abbreviation in the explanatory statement.18
17 changes of substance · 1 formal · 0 of wording only
Written by AI from the two texts only · read the changes before relying on it · 4 Sept 2026 · Report a problem
+62 added · −28 removed · 16 changed paragraphs, packaging included.
Part 4 of 4: EXPLANATORY STATEMENT
EXPLANATORY STATEMENT
4 unchanged paragraphs
The main rationale for establishing the 28th regime, a new corporate legal framework for emerging and existing innovative companies, start-ups and scale-ups including tax provisions, is to bolster competitiveness, resilience and strategic autonomy of the European Union in a radically changing global market. This new regime aims to strengthen the EU’s competitiveness through supporting innovative companies and closing existing innovation gaps particularly vis-à-vis the United States, China and other fast-growing markets, thereby, ultimately, enhancing prosperity and improving living conditions of EU’s citizens.
Its intention is not to harmonise the existing legal and regulatory frameworks for companies between Member States, which have evolved over time and continue to do so. Instead, it aims at complementing them by providing an optional framework for a specific group of companies responding to the rapidly shifting dynamics of economic competition, thus addressing their specific needs – including on tax matters.
The 28th regime shall be one of the resourceful tools for achieving the goals set out in the Savings and Investment Union, because in its very nature it shall:
• simplify access to higher-risk capital for SMEs, start-ups, and scale-ups and, at the same time, increase investors’ confidence by creating a more predictable environment, thereby enhancing investment protection and providing mechanisms to deal with potential losses;
Change 18
Changed:• stimulate private investment into R&D, particularly in those sectors, that are crucial for future growth (e.g. digital services and AI);artificial intelligence);
• eliminate major existing barriers to scaling up fast-growing innovative companies, which due to current regulatory hurdles, might otherwise relocate to other regions of the world offering a more suitable regulatory environment for their growth; and
• remove the fragmented regulatory and tax framework, which currently represents one of the most significant and often impassable (cost-ineffectiveness) burdens for fast-growing companies.
The Subcommittee on Tax Matters, being aware of the role of taxation in fostering more integrated financial markets within the European Union, recognises that the current fragmentation of tax systems among Member States places a burden on SMEs, start-ups and scale-ups, particularly for their growth and cross-border operations. At the same time, being conscious of the political sensitivity of taxation at both European and national levels, the Subcommittee aims to describe the major obstacles in the field of taxation, and outline viable options on how to overcome them, by proposing the possible design of a 28th tax regime for a particular subset of, or eventually, all companies, with the aim of strengthening the European Union’s competitiveness.