Published on: 16.12.2022 – 00:50
The 27 member countries of the EU on Thursday unanimously approved the transposition of the minimum tax of 15% on the profits of multinational companies into European law after the Hungarian and Polish blockades were lifted. The measure is scheduled to come into force in Europe on December 31, 2023.
The heads of state and government of the 27 member countries of the European Union on Thursday 15 December approved the transposition into European law of the minimum tax of 15% on the profits of multinational companies after the lifting of the Hungarian and Polish blockades, announced the European Commissioner on for the economy, Paolo Gentiloni.
The measure is scheduled to come into force in Europe on December 31, 2023. The unanimity of the Twenty-Seven was required to validate the draft directives prepared by the Commission and to implement the historic Tax Justice Accord endorsed last year by almost 140 countries under the umbrella of the OECD.
“Unity has triumphed”
Warsaw and Budapest, in turn, had blocked these files since the beginning of the year in order to have their economic stimulus programs, which are equipped with billions in subsidies, validated by the EU.
Finally, after getting the green light for their recovery plans, the two capitals lifted their reservations as part of a compromise on several dossiers, which also includes the release of €18 billion in macro-financial assistance to Ukraine in 2023.
“It’s been a long road with obstacles at every step. Today, unity has prevailed and all member states and all EU citizens will benefit from it,” Paolo Gentiloni said in a statement.
“A big step forward”
The global minimum tax is only part (known as Pillar 2) of the OECD agreement. The first pillar, which envisages taxing companies where they make their profits in order to discourage certain tax evasion practices, is particularly aimed at the digital giants. An international agreement is needed, which has not yet been concluded.
French President Emmanuel Macron, who has been working on the issue for several years, hailed “a major step forward for all those who, like us, are committed to tax justice”.
“We are implementing one of my favorite projects in Europe: minimum corporate taxation on a global level,” said Federal Chancellor Olaf Scholz.
With AFP