EU Tax Omnibus Directive: Key Reform Proposals and Implications for German Tax Law

On June 24, 2026, the European Commission presented a draft of a new Tax Omnibus Directive, which is intended to comprehensively simplify, modernize, and harmonize existing EU rules on corporate taxation in the area of direct taxes. The explicit goal is to simplify procedures, reduce unnecessary administrative burdens, and strengthen the competitiveness of the single market. The Tax Omnibus package–in particular the elimination of ownership thresholds in the Parent-Subsidiary Directive and the exemption of interest payments to unrelated third parties under the interest shield rule–is conceptually welcome.