EU issues draft directive to implement Pillar Two of OECD’s global tax rules
The European Commission has proposed a directive to implement the OECD’s new global tax rules, including the 15% minimum tax rate for corporations. The directive ‘reflects the global OECD agreement, with some necessary adjustments, to guarantee conformity with EU law’, the text states.
The proposal is based on the OECD’s Model Rules, released in December 2021, for the introduction of Global anti-Base Erosion (GloBE) rules into national domestic tax laws, as part of the OECD’s Two-Pillar solution. Domestic laws need to be operational by 1 January 2023.
Tax rules in the EU must be agreed to unanimously. Some countries, however, have already expressed concern that the timeline to implement the rules is too short.