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Home>News>Newsflash: EU Council publishes updated draft Directive on global minimum taxation (Pillar Two) in light of next ECOFIN meeting of 6 December

Friday, 02 December 2022

Newsflash: EU Council publishes updated draft Directive on global minimum taxation (Pillar Two) in light of next ECOFIN meeting of 6 December

Bart De Cock

Bart De Cock

Partner
Ghent
Robin Minjauw

Robin Minjauw

Partner
Brussels
Koen Morbée

Koen Morbée

Partner
Brussels
Andy Neuteleers

Andy Neuteleers

Partner
Tiberghien economics
Ahmed El Jilali

Ahmed El Jilali

Counsel
Brussels
Rik Smet

Rik Smet

Senior Associate
Brussels
Heleen Van Baelen

Heleen Van Baelen

Senior Associate
Tiberghien economics
Jacob Huyzentruyt

Jacob Huyzentruyt

Associate
Brussels

Last year, the European Commission published, as a Christmas present, a proposal for a Directive on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union. This proposal was based on the OECD’s Pillar Two initiative, which aims at introducing a global minimum tax for multinational groups (“MNE’s”).

While we are still waiting for the Administrative Guidelines from the OECD, the EU already took the next step towards a global minimum tax. On November 25, the Council published the (draft) Directive on a global minimum taxation. This Directive would be discussed and voted on the next Economic and Financial Affairs Council (ECOFIN) meeting on December 6th, 2022. Adoption of the Directive requires a unanimous vote. Previously, first Poland and then Hungary opposed the adoption of the Directive. It appears to be hoped that this revised draft will be accepted by all member states, including in particular Hungary.

The envisaged timeline for this Directive remains in line with its previous version, requiring the member states should to transpose it into domestic legislation by December 31st, 2023 at the latest. The Directive would take effect as from January 1st 2024. As 2024 is nearing, MNE’s with an annual, consolidated revenue of at least 750 mio EUR better start preparing for the global minimum tax (since also the OECD’s Administrative Guidelines were announced recently to be released early 2023). The outcome of the next ECOFIN meeting on Tuesday 6 December is therefore indeed eagerly awaited.

Tiberghien's Pillar Two Team

Bart De Cock – Partner (Belgium) – bart.decock@tiberghien.com

Robin Minjauw – Partner (Belgium) – robin.minjauw@tiberghien.com

Koen Morbée – Partner (Belgium) – koen.morbee@tiberghien.com

Andy Neuteleers – Partner Tiberghien economics (Belgium) – andy.neuteleers@tiberghien.com

Ahmed El Jilali – Counsel (Belgium) – ahmed.eljilali@tiberghien.com

Rik Smet – Senior Associate (Belgium) – (rik.smet@tiberghien.com)

Heleen Van Baelen – Senior Manager Tiberghien economics (Belgium) – heleen.vanbaelen@tiberghien.com

Jacob Huyzentruyt – Associate (Belgium) – (jacob.huyzentruyt@tiberghien.com)

Bart De Cock

Bart De Cock

Partner
Ghent
Robin Minjauw

Robin Minjauw

Partner
Brussels
Koen Morbée

Koen Morbée

Partner
Brussels
Andy Neuteleers

Andy Neuteleers

Partner
Tiberghien economics
Ahmed El Jilali

Ahmed El Jilali

Counsel
Brussels
Rik Smet

Rik Smet

Senior Associate
Brussels
Heleen Van Baelen

Heleen Van Baelen

Senior Associate
Tiberghien economics
Jacob Huyzentruyt

Jacob Huyzentruyt

Associate
Brussels
Tiberghien Brussels

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