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EU: ECOFIN approves two reports on tax-related initiatives and 2025 Code of Conduct Group conclusion

Includes updates on BEFIT, Pillar Two, and beneficial ownership transparency

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december 17, 2025

The Economic and Financial Affairs Council (ECOFIN) on December 12, 2025, approved two reports:

  • Detailing progress on tax-related initiatives during the second half of 2025: Key points include the lack of progress on the BEFIT Directive proposal, tax decluttering and simplification efforts, and the withdrawal of certain directive proposals. The report also discusses tax incentives, Pillar Two discussions, and the UN Tax Cooperation Framework. Read a December 2025 report prepared by KPMG’s EU Tax Centre
  • On the conclusions of the Code of Conduct Group during the Danish Presidency: The report includes updates on the monitoring of local measures, special economic zones, and the EU listing exercise against non-cooperative jurisdictions. It also highlights the need for beneficial ownership transparency and the implementation of country-by-country (CbC) reporting standards. Read a December 2025 report prepared by KPMG’s EU Tax Centre

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