The EU will force the adoption of provisions on minimum corporate tax

06.02.2024 The European Commission has begun to take measures against member States that have not yet fulfilled the requirements for the introduction of a 15% minimum corporate tax provided for by the international agreement of the OECD and G20 countries under Component 2.

EU Council Directive (EU) 2022/2523 has set a deadline of December 31, 2023 for all EU member states to implement the tax into their national legislation. Most EU member States have properly implemented the Directive, but nine of them have not yet done so (Cyprus, Estonia, Greece, Latvia, Lithuania, Malta, Poland, Portugal and Spain).

At the same time, Cyprus, Estonia, Latvia, Lithuania and Malta have explicitly stated that they will postpone the implementation of Component 2 or will do it in stages. In Cyprus, the changes will come into force only in January 2025. Spain published the bill in January 2024, but some rules on profits will come into force only after December 31, 2024.

On January 25, the European Commission sent letters to nine member states warning them that they were not complying with EU legislation. Spain has stated that its implementation project will mainly have a retrospective effect until January 1, 2024.

Link to source: https://ec.europa.eu/commission/presscorner/detail/en/INF_24_286