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.
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