New tax proposal to boost EU budget

On 16 July 2025, the European Commission proposed new budget options for its next multiannual financial framework, which will run from 2028 to 2034. As part of the framework, a new tax, the so-called “Corporate Resource for Europe” (CORE) contribution, was also presented.

The contribution would be levied at the level of EU companies and EU-based permanent establishments of non-EU companies (PE) with an annual turnover of at least EUR 100 million. Businesses with less than EUR 100 million in net turnover are excluded from the CORE. The contribution amount would be determined as per a ‘bracket system‘, with higher net turnovers resulting in larger contributions. However, certain entities would be excluded from the scope of the CORE, which, based on their particular purpose and status, generally do not carry on a trade or business for profit purposes (including certain governmental entities, international organisations and nonprofit organisations).

The proposal defines net turnover as the amounts derived from the sale of products and the provision of services after deducting sales rebates and value value-added tax, and other taxes directly linked to turnover. Alternatively, the term is to be interpreted as defined under national law.

The European Commission further proposes that the CORE levy would be due by each in-scope company or PE and would be collected by Member States on behalf of the EU. In this context, the proposal authorises the Council to lay down implementing measures necessary for the practical functioning of the collection of the contribution, including those related to reporting requirements, administrative procedures, forms, late payment interests, control measures and any relevant measures regarding recovery, sanctions and administrative penalties in cases of non-compliance by the companies.

The exact details of the proposal are not yet known, and numerous debates and amendments are expected regarding the proposal. If adopted, the CORE levy would apply as of 1 January of the first calendar year following the year in which the Council Decision has entered into force.