EU: European Parliament resolution on feasibility of 28th tax regime; FISC public hearing on DAC recast proposal
Recent tax developments from European Parliament
The European Parliament (EP) on July 9, 2026, adopted a resolution on the feasibility and potential benefits of a 28th tax regime, which was proposed by the European Commission (EC) on March 18, 2026.
The EC proposal (“EU Inc.”) aims to establish a single, optional, and harmonized set of corporate rules covering the entire lifecycle of a company, including creating a voluntary, EU‑wide corporate form. The new regime would not replace existing national company law frameworks but would operate as a parallel system alongside the national regimes of the 27 member states.
The regime is primarily designed for innovative and high-growth businesses, but it would also be accessible to established groups and non-EU investors operating through EU-based structures. Entrepreneurs setting up a new company in the EU would be able to choose between the EU Inc. form and existing national company forms. Additionally, entrepreneurs would retain the flexibility to choose the member state in which they wish to incorporate. The proposal does not introduce an EU‑level corporate tax system (i.e., the tax rules of the member state of incorporation would generally apply). Nevertheless, the proposal includes several tax-relevant features.
Read a July 2026 report prepared by KPMG’s EU Tax Centre
In addition, the EP’s Subcommittee on Tax Matters (FISC) on July 14, 2026, held public hearings on the Tax Omnibus and DAC Recast proposals, which were both published by the EC on June 24, 2026.
Read a July 2026 report prepared by KPMG’s EU Tax Centre