Home News EU adopts 15% minimum tax for multinationals, ‘big step forward’

EU adopts 15% minimum tax for multinationals, ‘big step forward’

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The leaders of the 27 member states of the European Union announced on Thursday evening, December 15, that they had agreed to transfer the minimum tax to European law at 15% on the profits of multinational companies, after the lifting of the Hungarian and Polish blockades. The measure is scheduled to enter into force in Europe on December 31, 2023.

The consensus of the 27 countries was necessary to endorse the Commission’s draft directive that implements the landmark agreement for greater tax fairness, endorsed last year by nearly 140 countries under the auspices of the Organization for Economic Co-operation and Development. Warsaw and Budapest, in turn, blocked this file since the beginning of the year to obtain EU approval for their recovery plans, which were endowed with billions of euros in subsidies.

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After getting the green light for their recovery plans, the two capitals finally lifted their reservations as part of a compromise on several files, which also includes the release of €18 billion in total financial aid to Ukraine in 2023.

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” Long trip “

It’s been a long journey, with bumps every step of the way. Today, unity has prevailed and all EU member states and citizens will benefit.Paolo Gentiloni rejoiced, in a press release.

The global minimum tax is only one part (known as Pillar 2) of the OECD agreement. The first pillar, which provides for taxing companies where they make their profits to put an end to certain tax avoidance practices, is aimed in particular at the digital giants. It requires an international agreement that has not yet been finalized.

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He welcomed French President Emmanuel Macron, who has been at the forefront of the issue for several years “A big step forward for all those who hang on to tax justice as we do.”. “We are implementing one of my most cherished projects in Europe: minimal corporate taxation worldwide”He also welcomed German Chancellor Olaf Scholz.

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