In their meeting held on 18 January 2022, the EU Economic and Financial Affairs Council discussed various issues including the urgent need to implement the global minimum tax agreed to at the level of the OECD. In regard to minimum corporate taxation, a release issued after the meeting includes the following:
Ministers held a policy debate on the proposed Council directive on ensuring a global minimum level of taxation for multinational groups in the Union. This comes after the Commission tabled its proposal for a directive at the end of December. The French Presidency therefore took the earliest opportunity to take work forward at Council level.
In their interventions, ministers confirmed the priority nature of this file and the need to urgently transpose the agreed rules of international corporate taxation as soon as possible.
The aim of the directive is to transpose the global OECD/G20 Inclusive Framework (IF) on base erosion and profit shifting (BEPS) on a two-pillar reform of the rules on international corporate taxation into EU law. This international agreement, which brings together 137 countries and jurisdictions, constitutes a major milestone towards an effective and fair system of profit taxation. The directive concerns the so-called 'Pillar Two' of the reform, which precedes 'Pillar One', on which technical work is still ongoing in the OECD BEPS IF.
"The agreement of 8 October 2021 is a success for the international community and, above all, a European success. It will provide fairness, efficiency and stability for our businesses and citizens. I am very pleased to conclude from today's discussion that we all share the desire to make swift progress. The EU is at the forefront of this historic reform and that is good news."
Bruno Le Maire, French Minister for Economic Affairs, Finance and Recovery
Proposal for a Council directive on ensuring a global minimum level of taxation for multinational groups in the Union, 22 December 2021
Statement on a Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy (OECD, 8 October 2021)