Five EU member states to decide on unilateral corporate minimum tax
International Business News – IBFD researcher Carla Valério reported that on September 9, 2022, France, Germany, Italy, the Netherlands and Spain issued a joint statement that clearly “committed to the rapid implementation of the global minimum effective corporate tax”. According to the statement, if there is no agreement at the EU level in the next few weeks, the governments of the five member states have decided to fully implement their commitments to implement the minimum effective tax in 2023 “by any legal means possible”.
In addition to the commitment to implement the minimum corporate tax agreed at the international level in the OECD/G20B EPS Inclusive Framework, the joint statement also refers to Pillar One. The five EU member states said they “redistribute the taxation power over the profits of global multinational giants, and we will do our best to complete this work, with the goal of signing a multilateral convention by mid-2023”.
The joint statement was issued at an informal meeting of the European Council for Economic and Fiscal Affairs (ECOFIN) in Prague from September 9 to 10, 2022, after the German Chancellor announced that Germany would start implementing the OECD Pillar II global minimum Tax rules (for previous related coverage, see IBFD news on September 7, 2022).
At a press conference on the second day of the conference, Executive Vice-President Vladis Dombrovskis reiterated the European Commission’s commitment to implementing a minimum corporate tax in the EU, noting that “the EU has unanimously agreed to implement a global minimum tax agreement. In terms of corporate taxation, now Delivering on this commitment should be our top priority. The committee is committed to advancing the implementation of a global minimum tax agreement and is working to find ways to achieve this goal.” According to Dombrovskis, the EU’s implementation of the Global Tax Agreement is not only about preserving the EU’s credibility in its international agreements, but also about fairness in difficult times.