Minimum corporate tax
As Hungary continues to veto the EU's attempt to implement the minimum corporate tax based on the OECD proposal (Pillar Two), the French, German, Italian, Spanish and Dutch governments published a joint statement on 9 September 2022 confirming their intention to implement a global minimum tax in 2023 if an EU-wide agreement cannot be found.
In short, the minimum tax directive was proposed by the EU Commission on 22 December 2021, providing a mechanism by which the 27 EU Member States would implement the Pillar Two GloBE rules proposed by the OECD. The draft directive proposes an effective 15% minimum corporate tax and a common set of rules on how to calculate this effective tax rate, so that it is consistently applied across the EU. The draft directive has been updated on a number of occasions in order to find a compromise between the Member States, including a deferred implementation option. For additional information on The EU minimum corporate tax and Pillar Two, please see our newsletter on 11 April 2022.
Schjødt's tax lawyers in Sweden and Norway are following the continuous development closely.