Annexes to COM(2023)528 - Head Office Tax system for micro, small and medium sized enterprises - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)528 - Head Office Tax system for micro, small and medium sized enterprises. |
|---|---|
| document | COM(2023)528 |
| date | September 12, 2023 |
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL
3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
- Existing budget lines
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Number: 03 04 0100 | Diff./Non-diff.26 | from EFTA countries27 | from candidate countries28 | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| 1 - Single Market, Innovation and Digital | Improving the proper functioning of the taxation systems | Diff. | NO | NO | NO | NO |
- New budget lines requested
In order of multiannual financial framework headings and budget lines.
| Heading of multiannual financial framework | Budget line | Type of expenditure | Contribution | |||
| Number | Diff./Non-diff. | from EFTA countries | from candidate countries | from third countries | within the meaning of Article 21(2)(b) of the Financial Regulation | |
| [XX.YY.YY.YY] | YES/NO | YES/NO | YES/NO | YES/NO |
3.2. Estimated financial impact of the proposal on appropriations
3.2.1. Summary of estimated impact on operational appropriations
- The proposal/initiative does not require the use of operational appropriations
- The proposal/initiative requires the use of operational appropriations, as explained below:
EUR million (to three decimal places)
| Heading of multiannual financial framework | Number 1 | Single Market, Innovation and Digital |
| DG: TAXUD | Year N29 | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | TOTAL | ||||
| □ Operational appropriations | ||||||||||
| Budget line30 03.04.01 | Commitments | (1a) | 0,200 | 0,400 | 0,200 | 0,100 | 0,090 | 0,990 | ||
| Payments | (2a) | 0,200 | 0,400 | 0,200 | 0,100 | 0,090 | 0,990 | |||
| Budget line | Commitments | (1b) | ||||||||
| Payments | (2b) | |||||||||
| Appropriations of an administrative nature financed from the envelope of specific programmes31 | ||||||||||
| Budget line | (3) | |||||||||
| TOTAL appropriations for DG TAXUD | Commitments | =1a+1b +3 | 0,200 | 0,400 | 0,200 | 0,100 | 0,090 | 0,990 | ||
| Payments | =2a+2b +3 | 0,200 | 0,400 | 0,200 | 0,100 | 0,090 | 0,990 |
| Heading of multiannual financial framework | 7 | ‘Administrative expenditure’ |
This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes.
EUR million (to three decimal places)
TOTAL appropriations
under HEADING 7
of the multiannual financial framework
(Total commitments = Total payments)
0,174
0,174
0,082
0,082
0,041
0,533
EUR million (to three decimal places)
2023
2024
2025
2026
2027
TOTAL
2021 – 2027 MFF
TOTAL appropriations
under HEADINGS 1 to 7
of the multiannual financial framework
Commitments
0,374
0,574
0,282
0,182
0,131
1,543
Payments
0,174
0,374
0,482
0,282
0,141
1,453
TOTAL appropriations
under HEADINGS 1 to 7
of the multiannual financial framework
3.2.2. Estimated impact on operational appropriations
- The proposal/initiative does not require the use of operational appropriations
- The proposal/initiative requires the use of operational appropriations, as explained below:
Commitment appropriations in EUR million (to three decimal places)
| Indicate objectives and outputs | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | TOTAL | |||||||||
| OUTPUTS | ||||||||||||||||
| Type32 | Average cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | No | Cost | Total No | Total cost | |
| SPECIFIC OBJECTIVE No 133… | ||||||||||||||||
| Specifications | 0,200 | 0,300 | 0,170 | 0,670 | ||||||||||||
| Development | 0,090 | 0,010 | 0,100 | |||||||||||||
| Maintenance | 0,050 | 0,050 | 0,050 | 0,150 | ||||||||||||
| Support | 0,010 | 0,030 | 0,030 | 0,030 | 0,100 | |||||||||||
| Training | 0,010 | 0,010 | ||||||||||||||
| ITSM (Infrastructure, hosting, licences, etc.), | 0,010 | 0,010 | 0,010 | 0,010 | 0,010 | 0,050 | ||||||||||
| Subtotal for specific objective No 1 | 0,200 | 0,400 | 0,200 | 0,090 | 0,090 | 0,090 | 1,070 | |||||||||
| SPECIFIC OBJECTIVE No 2 ... | ||||||||||||||||
| - Output | ||||||||||||||||
| Subtotal for specific objective No 2 | ||||||||||||||||
| TOTALS | 0,200 | 0,400 | 0,200 | 0,090 | 0,90 | 0,090 | 1,070 |
3.2.3. Summary of estimated impact on administrative appropriations
- The proposal/initiative does not require the use of appropriations of an administrative nature
- The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:
EUR million (to three decimal places)
| Year 2023 | Year 2024 | Year 2025 | Year 2026 | Year 2027 | TOTAL |
| HEADING 7 of the multiannual financial framework | ||||||
| Human resources | 0,170 | 0,170 | 0,080 | 0,080 | 0,040 | 0,540 |
| Other administrative expenditure | 0,004 | 0,004 | 0,002 | 0,002 | 0,001 | 0,013 |
| Subtotal HEADING 7 of the multiannual financial framework | ||||||
| TOTAL | 0,174 | 0,174 | 0,082 | 0,082 | 0,041 | 0,553 |
| Outside HEADING 734 of the multiannual financial framework | ||||||
| Human resources | ||||||
| Other expenditure of an administrative nature | ||||||
| Subtotal outside HEADING 7 of the multiannual financial framework |
| TOTAL | 0,174 | 0,174 | 0,082 | 0,082 | 0,041 | 0,553 |
The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
3.2.3.1. Estimated requirements of human resources
- The proposal/initiative does not require the use of human resources.
- The proposal/initiative requires the use of human resources, as explained below:
| 2023 | 2024 | 2025 | 2026 | 2027 | Total | |||
| □ Establishment plan posts (officials and temporary staff) | ||||||||
| 20 01 02 01 (Headquarters and Commission’s Representation Offices) | 1 | 1 | 1 | 0,5 | 0,25 | 1 | ||
| 20 01 02 03 (Delegations) | ||||||||
| 01 01 01 01 (Indirect research) | ||||||||
| 01 01 01 11 (Direct research) | ||||||||
| Other budget lines (specify) | ||||||||
| □ External staff (in Full Time Equivalent unit: FTE)35 | ||||||||
| 20 02 01 (AC, END, INT from the ‘global envelope’) | ||||||||
| 20 02 03 (AC, AL, END, INT and JPD in the delegations) | ||||||||
| XX 01 xx yy zz 36 | - at Headquarters | |||||||
| - in Delegations | ||||||||
| 01 01 01 02 (AC, END, INT - Indirect research) | ||||||||
| 01 01 01 12 (AC, END, INT - Direct research) | ||||||||
| Other budget lines (specify) | ||||||||
| TOTAL | 1 | 1 | 1 | 0,5 | 0,25 | 1 |
Estimate to be expressed in full time equivalent units
XX is the policy area or budget title concerned.
The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.
Description of tasks to be carried out:
| Officials and temporary staff | Preparation of meetings and correspondence with Member States; work on forms, IT formats and the Central Directory; Commission of external contractors to do work on the IT system. |
| External staff | N/A |
3.2.4. Compatibility with the current multiannual financial framework
The proposal/initiative:
- can be fully financed through redeployment within the relevant heading of the Multiannual Financial Framework (MFF).
Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. Please provide an excel table in the case of major reprogramming.
- requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation.
Explain what is required, specifying the headings and budget lines concerned, the corresponding amounts, and the instruments proposed to be used.
- requires a revision of the MFF.
Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.
3.2.5. Third-party contributions
The proposal/initiative:
- does not provide for co-financing by third parties
- provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
| Year N37 | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | Total | |||
| Specify the co-financing body | ||||||||
| TOTAL appropriations co-financed |
3.3. Estimated impact on revenue
- The proposal/initiative has no financial impact on revenue.
- The proposal/initiative has the following financial impact:
a. on own resources
b. on other revenue
c. please indicate, if the revenue is assigned to expenditure lines ◻
EUR million (to three decimal places)
| Budget revenue line: | Appropriations available for the current financial year | Impact of the proposal/initiative38 | ||||||
| Year N | Year N+1 | Year N+2 | Year N+3 | Enter as many years as necessary to show the duration of the impact (see point 1.6) | ||||
| Article …………. |
For assigned revenue, specify the budget expenditure line(s) affected.
[…]
Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).
[…]
1European Commission. (2022). Tax compliance costs for SMEs. An update and a complement : final report https://op.europa.eu/en/publication-detail/-/publication/70a486a9-b61d-11ec-b6f4-01aa75ed71a1
2COM (2005) 702: Communication from the Commission to the Council, the European Parliament and the Economic and Social Committee - Tackling the corporation tax obstacles of small and medium-sized enterprises in the Internal Market - outline of a possible Home State Taxation pilot scheme […] {SEC(2005)1785
3Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, An SME Strategy for a sustainable and digital Europe, COM/2020/103 final.
4Late Payment Directive will be replaced by a Regulation, to provide SMEs with a European standard on responsible business conduct across the Single Market.
5The Late Payment Directive will be replaced by a Regulation to provide SMEs with a European standard on responsible business conduct across the Single Market
6Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 1).
7European Commission. (2022). Tax compliance costs for SMEs. An update and a complement : final report https://op.europa.eu/en/publication-detail/-/publication/70a486a9-b61d-11ec-b6f4-01aa75ed71a1
8 Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC.
9OJ C , , p. .
10OJ C , , p. .
11Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC
12Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1).
13Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
14 Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 1).
15OJ L 123, 12.5.2016, p. 1.
16Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC
17 Council Directive (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the European Union (OJ L 265, 14.10.2017, p. 1–14).
18Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1)
19 Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the field of taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1)
20 Directive…[OJ: Please insert the number, date, title and OJ reference of that Directive].
21 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
22As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
23Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx
24Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF), OJ L 136 p. 1, 31.5.1999.
25Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities, OJ L 292 p. 2, 15.11.96.
26Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
27EFTA: European Free Trade Association.
28Candidate countries and, where applicable, potential candidates from the Western Balkans.
29Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the following years.
30According to the official budget nomenclature.
31Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
32Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).
33As described in point 1.4.2. ‘Specific objective(s)…’
34Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
35AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.
36Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).
37Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the following years.
38As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.
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