Directive (EU) 2016/1164

Directive (EU) 2016/1164, known as the Anti-Tax Avoidance Directive (ATAD), is an EU law aimed at preventing companies from using legal strategies to shift profits to low-tax or no-tax jurisdictions, thus eroding the EU's tax base. It introduces rules on controlled foreign company (CFC) taxation, interests deductibility limitations, and anti-abuse measures to ensure that multinational corporations pay their fair share of taxes within the EU. The directive promotes fair and transparent taxation, helping member states prevent tax avoidance while maintaining a level playing field for businesses operating across borders.