EU member states agreed on December 12 to introduce a minimum tax rate for large companies at EU level.
This measure is intended to limit the race to the bottom of the corporate tax rate. The profits of large multinational and national groups or companies with a total annual turnover of €750 million or more are taxed at a minimum corporate tax rate of 15%.
The new rules will reduce the risks of tax base erosion and profit shifting, ensuring that the largest multinational groups pay the lowest agreed global corporate tax rates.
Ambassadors of EU Member States have advised the Council to adopt this measure. A written process for formal recruitment will be initiated.
An EU Directive in this regard may be incorporated into the national law of the Member States by the end of 2023.
Czech Finance Minister Zbyněk Stájula said: Our message is clear. The largest corporate groups, whether multinational or national, must pay corporate tax of no less than 15% globally. “
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