Anti-Tax Avoidance Directive (ATAD)

This Directive lays down rules against tax avoidance in order to protect the EU internal market from base erosion and profit shifting practices that directly affect it. It sets a minimum level of protection for all taxpayers subject to corporate tax in one or more Member States, through measures including interest limitation, exit taxation, a general anti-abuse rule, controlled foreign company rules and hybrid mismatch rules, to ensure that tax is paid fairly and effectively where profits are generated.