On 9 July 2026, the European Parliament adopted a resolution on the feasibility of a 28th tax regime, endorsing a modular approach that would add a tax module to the proposed 'EU Inc.' corporate law framework. The resolution aims to reduce regulatory fragmentation and compliance costs for businesses operating across the EU, with estimated savings of EUR 328-440 million over 10 years.
The Parliament's position supports a single consolidated corporate tax base for participating companies, with allocation among member states based on a formula reflecting real economic activity, while member states retain control over tax rates. It also calls for a centralised VAT framework with a single EU VAT number and a digital One-Stop Shop portal, common simplified withholding tax procedures, and a mandatory EU employee stock option scheme where gains are treated as capital income. The resolution proposes standardised transfer pricing rules, harmonised R&D tax incentives aligned with OECD Pillar Two, and a fully digital registration process with an English-first principle.
The resolution stresses that the tax module must include thorough anti-avoidance measures, limiting access to companies with real economic activities to prevent shell companies. It also requires a comprehensive review every four years to assess adoption rates and economic growth. The Parliament warns that the regime must not create a parallel rulebook layered on top of national systems, nor enable circumvention of worker protections, social rights, or tax fairness. It must also avoid unfair tax advantages or 'tax shopping' and remain compatible with state aid rules and OECD guidelines.
The resolution responds to the Commission's legislative proposal on a 28th regime for companies, and represents the Parliament's formal position ahead of potential legislative negotiations. The proposed regime is seen as a tool to prevent the flight of EU unicorns, noting that close to 30% of European unicorns relocated outside the EU between 2008 and 2021. It also aims to complement the Savings and Investments Union and mobilise private capital, while reducing economic and territorial disparities across EU regions.