Global Daily Tax News, EU Seeks Input On Tax Omnibus Legislation, (Sep 14, 2026)

The European Commission has launched a new consultation on a finalized draft omnibus bill on taxation, intended to simplify EU tax rules and reduce compliance burdens for businesses.

The Omnibus on Direct Taxation would:

• Introduce an exemption from withholding tax on all cross-border payments of dividends, interest, and royalties between companies in the EU. The Commission said, by removing upfront procedural requirements and simplifying refund processes, the measure will facilitate financing, encourage investment, and enhance competitiveness;

• Remove unnecessary restrictions on genuine third-party and market financing;

• Simplify the interest limitation rule in the Anti-Tax Avoidance Directive (ATAD), by eliminating implementation options and making the de minimis threshold mandatory; and

• Remove overlapping provisions between the Controlled Foreign Company (CFC) rules and the global minimum tax (Pillar Two).

Feedback is being sought on the Commission's proposal for a Directive until November 5, 2026. The Commission said all feedback received will be summarized by the European Commission and presented to the European Parliament and Council with the aim of feeding into the legislative debate.