On December 6, 2022 the next meeting of the Economic and Financial Affairs Ministers of the European Union (ECOFIN) Council is on the agenda and for the first time in a while the Proposal for a COUNCIL DIRECTIVE on ensuring a global minimum level of taxation for multinational groups in the Union as released on December 22, 2021 seems to be on the agenda again.
Background
Initially there seemed to be consensus between the EU Member States regarding the necessity to adopt and implement the proposed EU Directive for a minimum tax for multinational groups. However, during the meeting of the ECOFIN Council that took place on April 5, 2022 Poland vetoed the proposed Directive. Then when Poland was back on board, during the meeting of the ECOFIN Council of June 17, 2022 Hungary was the one that vetoed the proposed Directive.
Since the meeting of the ECOFIN Council of June 17, 2022, at least officially, the proposed Directive hasn’t been on the agenda of meetings of the ECOFIN Council.
On September 9, 20220 the Netherlands, France, Germany, Spain and Italy issued a Joined Statement on Pillar 2, in which the stated that even the ECOFIN Council might not come to an agreement on the adoption and implementations of the proposed Directive these 5 EU Member States would go ahead and that they would swiftly implement regulations the global minimum effective corporate taxation (for multinational corporations).
Upcoming meeting of the ECOFIN Council
On the page of the ECOFIN Council the December 6, 2022 the following is stated regarding the Proposal for a COUNCIL DIRECTIVE on ensuring a global minimum level of taxation for multinational groups in the Union as released on December 22, 2021:
“Taxation: global minimum level of taxation (Pillar 2)
The Council will discuss the directive on ensuring a global minimum level of taxation for multinational groups in the Union.”
In the NOTICE OF MEETING AND PROVISIONAL AGENDA the following is stated:
”(poss.) Directive on ensuring a global minimum level of taxation for multinational groups in the Union
(Legal basis: Article 115 TFEU)
Adoption”
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