Where the law stands, Dossier 2023/0321(CNS)
Business in Europe: Framework for Income Taxation (BEFIT)
Consultation procedure (CNS): Parliament gives an opinion; the Council decides. · Parliament gives its opinion on a proposal. The Council decides, but must wait for Parliament’s opinion. · First reading
Parliament is consulted: it gives an opinion and can propose amendments, but the Council takes the decision and need not follow them.
Where it stands
Plenary vote
Parliament gave its opinion on 13 November 2025. The Council takes the final decision.
- Referred to committee(done) 15 January 2024
- Committee work(done) Report adopted 24 September 2025
- Tabled for plenary(done) 16 October 2025
- Plenary vote(done) Adopted 13 November 2025
- Adopted by the Council(to come)
Decided in plenary
13 November 2025 · decision 5
Economy & single market, New EU law
Business in Europe: Framework for Income Taxation (BEFIT)
Passed 370 for · 160 against · 107 abstained by a clear majority
AI summary:The BEFIT proposal introduces a common system for calculating the corporate tax base of large cross-border business groups in the EU and for allocating these tax bases among group members.
What changed
Latest Tabled for plenary → Adopted by Parliament
AI summary:The versions differ only in formal points and wording: a footnote date is corrected and a paragraph is rephrased without changing substance.
Committee draft → Tabled for plenary
AI summary:Introduces significant economic presence as a taxable nexus with a EUR 1 million revenue threshold, extending permanent establishment rules. Adds new anti-abuse rules: royalties limitation, controlled foreign company rules, and stricter interest limitation. Replaces the transitional allocation with a permanent formula based on sales, labour, assets, and digital presence, and adds accelerated depreciation. Removes the optional scope for smaller groups and the individual tax return system, simplifying procedures. Other changes are formal or wording: updated references, changed numbers, and rephrased recitals.
Committee draft → Committee draft
AI summary:Adds significant economic presence as a taxable nexus, with a EUR 1 million revenue threshold and implementing acts. Introduces interest, royalty, and CFC limitation rules to curb base erosion, with specific effective tax rate thresholds. Replaces the transitional allocation rule with a permanent formula based on tangible factors from 2035, and adds review requirements. Adds provisions on accelerated depreciation for sustainable assets, loss carry-forward changes, and administrative cooperation requirements. The other changes are formal or wording: updated cross-references, punctuation, and rephrased explanatory statements.
Who works on it
- Lead committee
- Economic and Monetary Affairs
- The MEP who drafts the report and negotiates it on behalf of the committee.
- Evelyn Regner (S&D)
- An MEP who follows a report on behalf of their own group when another group holds the rapporteur.
- Danuše Nerudová (EPP), Jaroslava Pokorná Jermanová (Patriots), Gilles Boyer (Renew), Rasmus Andresen (Greens), Manon Aubry (The Left), Ewa Zajączkowska-Hernik (ESN)
The text, version by version
Newest first.
Adopted by Parliament· 13 Nov 2025
AI summary:Parliament's amended version of the Commission proposal for a Council directive on Business in Europe: Framework for Income Taxation (BEFIT) sets common rules for computing a single corporate tax base for groups operating in the internal market.
Tabled for plenary· 16 Oct 2025
AI summary:Parliament's amended version of the proposed Council directive on Business in Europe: Framework for Income Taxation (BEFIT) sets common rules for computing and allocating the corporate tax base of large cross-border groups in the EU.
Committee draft· 12 May 2025
AI summary:The draft report approves the Commission proposal for a Council directive on Business in Europe: Framework for Income Taxation (BEFIT) with amendments. It lowers revenue thresholds, extends the permanent establishment concept, and introduces a formulary apportionment after 2035.
Committee draft· 21 Nov 2023
AI summary:The draft report approves the Commission proposal for a Council directive on Business in Europe: Framework for Income Taxation (BEFIT) as amended, introducing a common corporate tax base and allocation rules for large groups in the EU.
Committee opinions: Draft opinion (BUDG), Opinion (BUDG)
Timeline
Newest first.
Plenary stage 4 steps
13 November 2025
Plenary vote
Sitting of 13 Nov 2025 Adopted text TA10-0268/2025Report A10-0194/2025
12 November 2025
Debated in plenary
MEPs debated the text in the chamber ahead of the vote.
Sitting of 12 Nov 2025 Council / Commission text C9-0341/2023Report A10-0194/2025
4 November – 12 November 2025
104 amendments tabled for the plenary vote
Groups propose changes to the tabled text; each is voted on before the final vote.
Amendments 1–81Amendments 82–91Amendment 92Amendments 93–102Amendments 103–104
16 October 2025
Report tabled for plenary
This is the text all MEPs vote on. Political groups can still table amendments to it.
Committee stage 7 steps
24 September 2025
Committee vote: report adopted
ECON (Economic and Monetary Affairs) voted on the amendments and adopted the report that goes to plenary.
16 July 2025
BUDG (Budgets) adopted its opinion
The opinion is attached to the report for the lead committee to consider.
13 June 2025
Amendments tabled in committee
Members of ECON (Economic and Monetary Affairs) proposed changes to the draft.
14 May 2025
Draft opinion from BUDG (Budgets)
An associated committee gives its view to the lead committee.
12 May 2025
Draft report published
The rapporteur’s first text in ECON (Economic and Monetary Affairs). Members can table amendments before the committee votes.
15 January 2024
Referred to the ECON (Economic and Monetary Affairs) committee
The lead committee prepares Parliament’s report.
21 November 2023
Draft report published
The rapporteur’s first text in ECON (Economic and Monetary Affairs). Members can table amendments before the committee votes.
Official record: Legislative Observatory, 2023/0321(CNS)