Agreement on the directive for a global minimum tax in Europe is postponed until at least May.
European Union finance ministers met to again discuss how the EU will implement the minimum corporation tax. Agreement was not reached, however, as Poland refused to support the proposal.
EU finance ministers have been having regular discussions on how best to implement the GloBE – the OECD’s global anti-base erosion tax that would see corporations pay a minimum 15% corporation tax around the globe, guidelines for which were released in January. All EU Member states agreed to these guidelines and, according to EU rules, tax measures require unanimous approval.
Reason’s for Poland’s lack of support include the lack of a legally binding mechanism linking the application of the minimum tax to the main technology multinationals.
We await May’s meeting for more news on how the EU will meet the 2023 implementation deadline.
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