Position Paper on the Head Office Tax System proposal (HOT)
Technology Industries of Finland agrees with the European Commission that tax compliance is too burdensome and complex at the moment. Thus, we welcome the idea to ease up the administrative burden of businesses, especially of the SMEs.
- TIF supports the principal idea of the HOT-directive proposal (Head Office Tax System for micro, small and medium sized enterprises). It has potential to lighten the administrative burden of SMEs.
- However, when introducing new tax models, it should be thoroughly analysed, whether the administrative burden will factually turn less burdensome, not just generate an extra layer of compliance. Thus, Teknologiateollisuus ry supports that the model is optional for the companies.
- TIF suggests that the HOT-model would be extended to also apply to SMEs operating in a subsidiary structure and gradually extended to cover all tax obligations of the SME
