2022-06-20-KPMG_s_EU_Tax_Centre-Euro_Tax_Flash_from_KPMG_s_EU_Tax_Centre_7页_305kb

EU Minimum Tax Directive Background

The EU's Minimum Tax Directive proposal was blocked at the June 17, 2022 ECOFIN Council meeting due to Hungary's last-minute veto, despite prior agreements. The Council approved an ECOFIN report summarizing progress across various tax measures, including the Minimum Tax Directive and digital economy issues.

June 17 ECOFIN Meeting Outcome

Hungary cited geopolitical concerns and requested further work on procedural and substantial questions, preventing agreement. Poland lifted earlier reservations but failed to secure unanimous backing. Poland sought clarification on the European Commission's Pillar One readiness and dissociated from mandatory links to the Directive.

EU Tax Centre Reactor

The EU Tax Centre anticipates the updated compromise text reflecting the Commission's June 2023 Pillar One report. Czech Republic's Finance Minister suggests revising the legislative procedure to qualified majority voting for smoother consensus.

Code of Conduct Group Updates

The Group's June 17 report confirms completion of the Investment Zone (PL013) review in Poland. Standstill reviews are paused for certain countries (Romania, Croatia) pending national legislation or aid resolutions. New reviews include Eswatini and Armenia's tax regimes. The mandate reform process continues.

Non-Cooperative Jurisdictions Updates

Annex updates for non-cooperative jurisdictions proposed stricter criteria for tax information exchange. Jurisdictions not meeting automatic exchange standards were ordered commitments, while substance requirements reinforced. The inclusion of beneficial ownership information as a criterion 1.4 update aims to combat tax evasion.

Overview of Defensive Tax Measures

Defensive measures against non-cooperative jurisdictions' use were deemed incomplete, requiring further analysis and coordination among Member States to close legislative gaps.