Proposal for a Council Directive on ensuring a global minimum level of taxation for multinational groups in the Union

Author (Corporate)
Series Details COM (2021) 823
Publication Date 22/12/2021
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Legislative initiative tabled by the European Commission on 22 December 2021, aimed at ensuring a minimum effective tax rate for the global activities of large multinational groups.

Further information:

In October 2021, the OECD/G20 Inclusive Framework (IF) on Base Erosion and Profit Sharing (BEPS) agreed on a global consensus-bases solution aimed at addressing tax challenges relating to the digital economy. Minimum corporate taxation was one of the two work streams agreed by members of this working group. The work culminated in a global agreement among 137 jurisdictions.

The proposed Council Directive aims to deliver on the European Union's pledge to be among the first to implement this global tax reform agreement. It lays down rules for ensuring minimum level of effective corporate taxation of large multinational groups and large-scale purely domestic groups operating in the EU's Single Market. It sets out how the principles of a 15% effective tax rate is to be applied in practice within the EU, and it includes a common set of rules on how to calculate this tax rate so that it is properly and consistently applied across the EU. The proposal also follows closely the OECD Model Rules agreed by the IF and published on 20 December 2021.

The draft Directive was tabled by the European Commission on 22 December 2021.

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Commentary and Analysis
Greens/EFA EP Group: Opinion, 17/12/2021: Big profits should mean fair taxes: the EU's minimum tax rules need to be stronger to achieve tax justice
European Network on Debt and Development (EuroDad): Press Release, 22/12/2021: Unambitious corporate tax proposal could lead to shortage of EU resources for Covid-19 recovery
Oxfam International: Press Release, 22/12/2021: Oxfam reaction: European Commission proposals on corporate tax are a far cry from fair
PwC: Tax Policy Alert, 22/12/2021: European Commission's Directive proposal on implementing Pillar Two 15% minimum effective tax rate in the EU
DLA Piper: Insights, 23/12/2021: Following suit, European Commission publishes draft EU Directive to swiftly implement OECD 15 percent global minimum tax
Ernst&Young (EY), 24/12/2021: European Commission proposes tax Directive for implementing BEPS 2.0 Pillar Two Model Rules in the EU
EPRS: At a Glance, May 2022: Global minimum level of taxation for multinational enterprises in the EU

Reuters, 09/12/2021: EU to draft texts on implementing global corporate minimum tax deal by spring - Macron
The Irish Times, 21/12/2021: Big Irish firms to face 15% corporate tax under EU proposals
RTÉ News, 22/12/2021: EU proposes 3 new taxes to repay Covid borrowings
The Guardian, 22/12/2021: EU to combat taxation ‘race to the bottom’ with 15% rate for big companies
Politico, 22/12/2021: Bid to set a global minimum tax rate gets underway in EU
Politico, 22/12/2021: EU pushes on with global minimum tax rate despite US stalemate
MNE Tax, 22/12/2021: EU directive sets out approach to global minimum tax, adds domestic application
Malta Today, 23/12/2021: Brussels announces 15% tax for large multinational groups to finance EU budget
EUObserver, 23/12/2021: EU proposes minimum corporate tax under global deal
ECO News (Portugal), 18/01/2022: Government expects EU agreement this week on multinational 15% tax
Bloomberg, 18/01/2022: France faces skeptics over quick implementation of minimum tax
ERR News, 19/01/2022: Minister: Estonia can't tolerate EU global minimum tax rate in current form
EurActiv, 19/01/2022: Poland and Hungary want to slow French push for minimum tax directive
Financial Review, 19/01/2022: France faces sceptics over quick implementation of minimum tax
EurActiv, 15/03/2022: Global minimum tax hits roadblock as EU states disagree on directive
Bloomberg Tax: News, 04/04/2022: EU Lawmakers Urge European Implementation of Global Minimum Tax
Politico, 04/04/2022: Macron uses global tax reform to dodge ‘McKinseygate’ ahead of election
The Irish Times, 05/04/2022: Poland blocks EU agreement on 15% minimum corporate tax rate
Reuters, 05/04/2022: Poland blocks EU compromise on global minimum corporate tax deal
Bloomberg, 05/04/2022: EU Push for Global Minimum Tax Falters Again as Poland Blocks
EurActiv, 06/04/2022: Poland blocks EU directive to implement global corporate tax deal

EUR-LEX: SWD(2021)580: Staff Working Document accompanying the Proposal - Subsidiarity Grid
European Parliament: Legislative Observatory: Procedure File for Proposal on Minimum level of taxation for multinational groups (2021/0433(CNS))
European Parliament: Legislative Train Schedule: Legislative proposal on the implementation of the OECD global agreement on minimum effective taxation
European Commission: DG Taxation and Customs Union: Minimum corporate taxation
European Commission: Press Release, 22/12/2021: Fair Taxation: Commission proposes swift transposition of the international agreement on minimum taxation of multinationals
European Commission: Questions and Answers on Minimum corporate taxation (22 December 2021)

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