The European Commission has proposed an overhaul of some of the European Union's business taxation rules in an effort to cut red tape and administrative costs.
"Europe needs simpler rules to deliver better results," said EU Economy Commissioner Valdis Dombrovskis on Wednesday.
"Our tax simplification proposals offer solutions [that] will radically improve clarity and legal certainty for businesses and tax administrations alike," he said, adding that the proposed changes are to save businesses almost €8 billion ($9.07 billion) annually, including €3.3 billion in administrative costs.
The planned changes are also meant to foster investments and economic activity across the borders of EU member countries, the commission said.
The withholding tax on payments of dividends, interest and royalties between companies based in different EU countries would no longer be due, generating savings of around €5.3 billion per year.
Other proposed changes include removing restrictions on investments in the EU's internal market, eliminating overlapping legislations, and reducing reporting requirements for some multinational businesses and tax arrangements.
The changes still have to be discussed by the European Parliament and adopted by EU member countries.
