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| Both the 500 Club and the APZD welcome the EC's proposal to simplify tax rules |
| Bratislava, 20.07.2026 |
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| The employers' associations Club 500 and the Association of Industrial and Transport Unions (APZD) welcome the European Commission's (EC) proposal to simplify tax rules and the administrative burden for businesses in the European Union (EU), which the Commission adopted at the end of June this year. According to the EC, its aim is to make Europe a more attractive place for investment, innovation and entrepreneurship.
"We welcome the EC's proposal to simplify tax rules and reduce the administrative burden. Every measure that reduces bureaucracy and increases legal certainty is a step in the right direction," Tibor Gregor, executive director of Club 500, told TASR.
"We consider two elements to be particularly positive. The first is the introduction of an immediate deduction for investments in research and development. Today, a company that buys a research facility depreciates its price for years. Under the new law, it could deduct it immediately. The money will thus remain in the company when it invests, not six years later. The second is the adjustment of the rules for deducting interest costs in debt financing. Until now, a member state had to introduce a limit of 30% with an exception of up to three million euros, but it could also apply stricter limits at its own discretion. Until now, the directive was a minimum standard and the state could tighten it. Now, it should be a uniform standard," he specified.
According to Gregor, the EC is talking about savings of almost eight billion euros per year for the entire EU. More than two-thirds of this amount is made up of the abolition of withholding tax, i.e. tax savings, not a reduction in bureaucracy. “The actual administrative savings are in the order of three billion euros. In the economy of the entire Union, this amounts to less than five hundredths of a percent of its economy,” he noted.
“On the other hand, let’s compare this with what is really suffocating European industry. According to World Bank data, in June 2026, Europe paid about 45 euros per megawatt-hour for wholesale gas, while the US paid about nine euros. Draghi’s competitiveness report identified this difference as one of the main reasons for Europe’s lagging behind. Almost two years have passed since its publication and practically nothing has changed,” he underlined.
Gregor pointed out that the package of proposals requires unanimous consent from all 27 member states. According to estimates, the legislative process will not be concluded before 2027, and most of the measures are not expected to come into effect until 2029, and some even in 2030. However, European industry is not deciding on its competitiveness in 2029, it is deciding on it today.
The APZD also welcomes the EC's proposed package of measures. "We consider the most significant positives to be the exemption from withholding tax on dividends, interest and royalties between companies in the EU, the creation of a common framework to support investment in research and development, the removal of preliminary administrative procedures in the application of these exemptions, the alignment of the rules for cross-border reorganizations with the Company Mobility Directive," the association said.
"We also positively assess the amendments to the rules limiting the deduction of interest costs, the extension of exemptions for investment financing, as well as the simplification of the rules for controlled foreign companies. These measures can contribute to reducing the costs of companies to ensure compliance with tax rules," added the APZD.
On 24 June, the EC adopted a package of measures designed to simplify EU tax rules and reduce the compliance burden for companies. The measures consist of two proposals, the so-called "omnibus" for taxation and a revised text of the Administrative Cooperation Directive. They will modernise the EU's direct tax framework and strengthen the competitiveness of the single market, while maintaining a strong level of protection against tax fraud, evasion and avoidance.odkaz na stránku |
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