Establishing a Head Office Tax system for SMEs (HOT)

EESC opinion: Establishing a Head Office Tax system for SMEs (HOT)

Key points


  • supports the EC proposal to establish a Head Office Tax (HOT) system for micro, small, and medium-sized enterprises (MSMEs) and its objectives, since they are in line with enhancing MSMEs, simplifying their cross borders activities, and reducing administrative and financial barriers, increasing the overall competitiveness of MSMEs;
  • notes that the adoption of the HOT system proposal will bring high added value to businesses, employees and Member States. The reduction of the administrative burden for MSMEs will bring more competitive advantages to their everyday operations;
  • urges no delays in the adoption of the EC proposal on the HOT system to enhance MSMEs' growth and promote a level playing field for the participation of MSMEs with cross border operations in the internal market, thus contributing to long-term GDP and employment growth;
  • believes that the HOT system will increase and improve cooperation between tax authorities in Member States. Cooperation between them is key for the successful and meaningful implementation of the proposed HOT system and the achievement of set objectives;
  • urges the EC to work closely with Member States and organisations representing MSMEs after the adoption of the Proposal to raise awareness of the available HOT mechanism between MSMEs to better achieve the objectives of reducing regulatory burdens, increasing cross-border activity and using the advantages of the Single Market to the full.