2022-04-05-KPMG_s_EU_Tax_Centre-Euro_Tax_Flash_from_KPMG_s_EU_Tax_Centre_4页_348kb

Background

• The EU Council (Ecofin) did not reach a political agreement on a revised EU Minimum Tax Directive proposal on April 5, 2022.
• Poland expressed reservations, stating a lack of legal linkage to the OECD's Pillar One solution (contrary to EU law principles).
• The revised compromise text (March 28, 2022) addresses four Member State concerns by extending the optional IIR/UTPR deferral period to six years and raising the UPE threshold from ten to twelve.
• It also empowers the Commission to issue a list of qualified IIR regimes via delegated acts (previously an implementing act requiring unanimity).
• The French Presidency maintains a proposal for a joint Council statement committing to Pillar One's successful implementation.
• The directive will be revisited at the May 24, 2022 Ecofin meeting after Poland's failure to support the revised text accordingly.
• Concerns exist about the lack of legal linkage between Pillar One and the subsequent EU minimum tax implementation.

EU Tax Centre Commentary

• Despite Poland's reservation, French Presidency/Commission seek agreement.
• Emphasize the potential complexity if minimum tax rules don't align with potential future BEPS 2.0 timeline/inclusion.
• Suggest guidelines (e.g., GloBE Implementation Framework) could help achieve harmonized implementation.
• Note uncertainties around simultaneous implementation (especially regarding US participation).

Next Steps

• EU Member State delegates meet again on May 24, 2022 (Ecofin meeting) aiming for consensus on the minimum tax directive's implementation framework and linkage to Pillar One.