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TL;DR


1. EU-INC

1.1 EU-REGISTRY

1.2 EU-DASHBOARD

1.3 EU-FAST


2. EU-ESOP


3. Taxation


4. Employment


What we DON’T want!

FAQ & Glossary

Supporting Appendices

Authors & Acknowledgments

<aside> Pillar 3. TAXATION


This section outlines the current taxation framework, its potential challenges for the EU-Inc model and presents recommendations to enhance efficiency and offers recommendations to improve efficiency and establish the EU-Inc as a credible and globally recognized entity.

Powering the EU-Inc

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‣ Applicable Law and Current Dilemma

Tax systems rely on the concept of a "head office" or central management to determine a company's tax residency and liability. However, this model may present challenges for the EU-Inc, which is designed for seamless cross-border operations. Multiple jurisdictions may claim tax rights over the profits of an EU-Inc company, leading to potential double taxation, which creates uncertainty and could undermine the model's credibility.

Existing options for companies operating in multiple jurisdictions, such as establishing a Permanent Establishment (the “PE”) or forming a local subsidiary, each have their own complexities. Defining a PE involves navigating detailed rules on activity duration, agents, and profit allocation, often leading to ambiguity. Managing multiple subsidiaries offers legal separation but introduces administrative burdens and increases compliance challenges, particularly in relation to diverse tax regulations and double taxation treaties.

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The EU-Inc

The introduction of the EU-Inc entity is a step towards promoting more efficient cross-border business within the EU. This new entity type presents an opportunity to develop a system that is specifically tailored to the needs of businesses operating across multiple EU jurisdictions. While the "28th regime," could theoretically allow the EU-Inc to adopt a standard EU-level approach to taxation, the sovereignty of individual Member States over choosing their own tax rates, tax collection and enforcement remains intact. Whatever the approach, the tax framework should uphold the key principles of  fairness, simplicity, and centralization to ensure predictability and growth while ensuring efficient revenue collection across multiple EU jurisdictions. This is achieved through the following:


Next: 4. Employment

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