Directive on taxation of companies

The Directive on the taxation of companies is a set of rules established by the European Union to ensure that businesses across member countries are taxed fairly and consistently. It aims to prevent companies from shifting profits to low-tax jurisdictions and promotes transparency, fair competition, and the proper collection of taxes. By harmonizing certain tax practices, the directive helps create a balanced economic environment where companies operate under similar standards, reducing tax evasion and ensuring governments can fund public services effectively.