BRUSSELS—The European Union announced twin measures aimed at curbing tax avoidance by global corporations as criticism on the budget-strapped Continent mounted over the tax practices of companies such as Apple Inc. and Google Inc.

The European Commission said it plans to close a loophole that allows some companies to pay little or no tax by routing profits abroad. The commission, which is the EU's executive arm, predicted that the move would raise billions of euros in much-needed revenues for national governments.

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