Proposed Directive To Implement Pillar Two In The EU

EU Commission proposes a Directive to ensure a global minimum level of taxation for MNE groups in the EU, generally mirroring the Pillar Two approach.

On December 22, 2021, the European Commission published a proposed EU Directive to incorporate the Pillar Two tax rules into EU law.

Pillar Two is a part of a two-pillar approach developed by the Inclusive Framework of the OECD, aimed at addressing the tax challenges arising from the digitisation of the economy. Pillar Two introduces a global minimum tax, agreed at 15% by the Inclusive Framework Members, including Malta, calculated based on a specific rule set. It applies to groups with combined revenues of more than €750 million a year.