Business in Europe: Framework for Income Taxation (BEFIT)
01020304
With the European Parliament.
Last active 13 Nov 2025
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What this bill does
In plain terms: what it changes and who it affects.
BEFIT creates one EU-wide method for large corporate groups to calculate and allocate their corporate tax base across Member States.
Who it affects
Large multinational and domestic corporate groups operating in the EU, especially groups with annual combined revenues of at least EUR 750 million. Smaller consolidated groups may opt in.
Core of the proposal
- Requires eligible groups to compute member results from financial accounts with limited tax adjustments.
- Aggregates BEFIT group members’ results into one EU tax base, allowing cross-border loss relief.
- Allocates the aggregated tax base during transition using members’ recent taxable results.
- Creates a one-stop-shop filing system and BEFIT teams for coordinated tax administration.
Key provisions
- Transitional law
- A transition allocation rule applies from 1 July 2028 until 30 June 2035 at the latest.
Latest update
26 May 2026The most recent development in this bill's progress.
Moved to European Parliament
Documents
2 recentSourcesOEIL