Home News EU adopts 15% minimum tax on multinationals, a ‘major step forward’

EU adopts 15% minimum tax on multinationals, a ‘major step forward’

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The leaders of the 27 member countries of the EU announced Thursday evening December 15 that they had approved the transposition into European law of the minimum tax of 15% on the profits of multinationals, after the lifting of the Hungarian and Polish blockages. The entry into force of the measure in Europe is scheduled for December 31, 2023.

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. Warsaw and Budapest had in turn blocked this file since the beginning of the year to obtain the validation by the EU of their recovery plans endowed with billions of euros in subsidies.

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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.

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” A long trip “

“It was a long journey, with obstacles every step of the way. Today, unity has prevailed and all EU Member States and citizens will benefit”rejoiced Paolo Gentiloni, in a press release.

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 practices of tax evasion, targets in particular the digital giants. It requires an international agreement which is not yet finalized.

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

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