The EU adopts the minimum tax of 15% on multinationals

The measure will come into force in Europe on December 31, 2023. The leaders of the 27 EU member countries announced, on Thursday, December 15, that they had approved the transposition into European law of the minimum tax of 15% on the profits of multinationals. The unanimity of the Twenty-Seven was necessary to validate the draft directive prepared by the Commission, which implements the historic agreement for more tax justice approved last year by nearly 140 countries, under the aegis of the OECD.

French President Emmanuel Macron hailed “a major step forward for all those who hold as we hold to tax justice”. “We are implementing one of my most cherished projects in Europe: minimum corporate taxation at global level”, also welcomed the German Chancellor, Olaf Scholz.

The lifting of the Hungarian and Polish blockages

Warsaw and Budapest had in turn blocked this file since the beginning of the year, in order to obtain the validation by the EU of their recovery plans endowed with billions of euros in subsidies. After having secured a green light on their recovery plans, the two capitals finally lifted their reservations as part of a compromise on several files, which also include the release of macro-financial aid of 18 billion euros for Ukraine in 2023.

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

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