2024-10-03 14:55 update: 2024-10-03, 15:00
Photo: PAP/NTB/Cornelius Poppe
The European Commission has referred Poland, among other countries, to the Court of Justice of the European Union (CJEU) for failing to implement a minimum level of taxation.
In a statement issued on Thursday, the EC announced that it has "decided to refer Spain, Cyprus, Poland, and Portugal to the Court of Justice of the European Union for failing to notify measures for the transposition into national law of Council Directive... of 15 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union."
The EC stated that it was the responsibility of all member states to "bring into force the laws necessary to comply with the Pillar 2 Directive by December 31, 2023."
At the same time, the Commission acknowledged that "significant efforts are being made by the authorities to finalise their Pillar 2 national implementing legislation" but added that "to date, these Member States have not notified the transposition measures."
Consequently, the EC is referring them to the CJEU "for lack of transposition of the relevant EU provisions."
According to the EC, the minimum taxation component of the reform "will limit the race to the bottom in corporate tax rates."
It wrote: "The profit of the large multinational and domestic groups or companies with a combined annual turnover of at least EUR 750 million will be taxed at a minimum effective tax rate of 15 percent."
"The Commission considers the implementation of the Pillar 2 rules a priority because it will help reduce the risk of tax base erosion and profit shifting and ensure that the largest multinational groups pay the agreed global minimum rate of corporate tax," the EC added. (PAP)
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