Hungary and Poland have lifted their blockage to this deduction from profits whose entry into force in Europe is scheduled for December 31, 2023.
mo12345lemonde with AFP
“It was a long trip, with obstacles at each stage”. The image carried by Paolo Gentiloni, Commissioner for the Economy of the European Union (EU), speaks volumes about the journey of the European multinational taxation project. But the leaders of the twenty-seven EU member countries finally announced, Thursday, December 15, having approved the transposition into European minimum tax law of 15 % on the profits of companies.
The unanimity of the members was necessary to validate the project of 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 ‘Organization for Economic Cooperation and Development (OECD).
Poland and Hungary had in turn blocked this file since the beginning of the year to obtain the validation by the EU of their stimulus plans with billions of euros in subsidies. After ensuring a green light on their stimulus plans, Warsaw and Budapest finally lifted their reserves as part of a compromise on several files, which also includes the release of macrofinanous aid of 18 billion euros for Ukraine in 2023.
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“Today, the unit prevailed and all the member states and all the citizens of the EU will benefit from it”, was delighted Paolo Gentiloni in a press release.
The entry into force of the measure in Europe is scheduled for December 31, 2023. World minimum tax is only part (known as pillar 2) of the OECD agreement. The first pillar, which provides for the taxation of companies where they carry out their profits to put an end to certain tax evasion practices, targets the digital giants in particular. It requires an international agreement which is not yet finalized.
The French President Emmanuel Macron, at the forefront on this file for several years, has praised “a major advance for all those who hold as we hold on to the tax justice”.
“We are implementing one of my most expensive projects in Europe: the minimum taxation of companies worldwide,” also praised the German Chancellor, Olaf Scholz.