The new European Commission work programme for 2026

Key initiatives in direct taxation

On 21 October 2025, the European Commission published its work programme for 2026, which brings several initiatives in the field of direct taxation. Among the main measures is the planned Omnibus package, expected to be presented in the second quarter of 2026. The aim of this package is to simplify and align several existing directives in the area of direct taxes, thereby reducing the administrative burden for businesses across the EU.

Another important initiative is the proposal for the so-called 28th legal regime, which the Commission plans to introduce in the first quarter of 2026. This regime is intended to create a unified legal framework for new and growing businesses throughout the EU, operating alongside existing national systems. It is not yet clear whether this regime will also include tax measures.

In 2026, a recast of the Directive on Administrative Cooperation (DAC) is also expected, which should consolidate all previous amendments into a single text and introduce further changes based on an evaluation of its functioning. This initiative could be presented together with the Omnibus package.

Withdrawn proposals and further developments

At the same time, the Commission announced that over the next six months it plans to withdraw several older proposals that are no longer relevant. These include, for example, the proposal for rules to prevent the misuse of shell companies for tax purposes (Unshell), the proposal for a financial transaction tax (FTT), the DEBRA initiative to reduce the debt-equity tax bias, and the proposal for a transfer pricing directive. However, some elements of these proposals may appear in new legislative packages, particularly within the recast DAC.

Existing proposals in the legislative process

The work programme also mentions several key proposals that remain under discussion. These include the BEFIT proposal, which aims to introduce common rules for the taxation of corporate groups in the EU, the HOT proposal for simplified taxation of small and medium-sized enterprises operating abroad, as well as proposals related to digital services and the taxation of digital presence. For digital taxes, the Commission continues to prefer seeking a multilateral solution.

The 2026 work programme confirms the Commission’s ongoing efforts to simplify and harmonise tax rules across the EU.