A draft EU code on corporate tax took a step forward yesterday when junior ministers from the 15-nation bloc and national tax officials gave broad approval to the plan, officials said, paving the way for the European Commission to make a formal proposal to finance ministers next month.

The non-binding code is part of a package of measures, including legislation, that Luxembourg Prime Minister Mr Jean-Claude Juncker wants fellow EU leaders to endorse at their December EU summit in Luxembourg.

The legislative part of the plan includes draft directives on taxing savings; scrapping taxes on cross-border interest and royalty payments between companies; and setting minimum tax rates on items such as energy products.