The last days the status regarding the Council Directive on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union (Council Directive to implement Pillar 2 in the EU) was moving in a fast pace in both directions. So fast it was hard to keep track.

 

On December 12, 2022 the Council of the EU issued a press release stating that the Committee of Permanent Representatives reached the required unanimous support, that the ambassadors of EU member states decided to advise the Council to adopt the Pillar 2 Directive in the EU and that written procedure for the formal adoption would be launched.

 

Then on December 14-15 rumors came out that Poland had blocked the adoption of the Council Directive to implement Pillar 2 and that it had asked for an extension for giving its approval and that it would like the Directive to be discussed during the European Council that would take place on December 15, 20222.

Finally late in the evening of December 15, 2022 during a press conference that took place after the meeting of the European Council it was confirmed that during the meeting of the European Council the Council Directive to implement Pillar 2 in the EU was adopted.

 

In the middle of the night a press release was issued by the European Council a press release was issued in which the following was stated:

A written procedure for the formal adoption of four pieces of legislation has ended. This means that the Council has formally adopted the following pieces of legislation:

  • A regulation amending the multiannual financial framework for the years 2021 to 2027, which will enable the EU to use the headroom of the EU budget for its macro-financial assistance to Ukraine in 2023. This means that all EU member states will participate in this effort.
  • A directive on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union, also known as Pillar 2
  • The Council implementing decision for the protection of the Union budget against breaches of the principles of the rule of law in Hungary (rule of law conditionality mechanism).
  • The Council implementing decision which approves the Commission’s assessment of Hungary’s recovery and resilience plan.

 

The adoption is the final step in the Council’s legislative process for these pieces of legislation.

 

The text of the Council Directive to implement Pillar 2 as adopted can be found here.

 

 

Copyright – internationaltaxplaza.info

 

 

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