Global Minimum Tax (Pillar 2)

On December 22, 2022, the Council Directive (EU) 2022/2523 of 15 December on ensuring an overall minimum level of taxation for multinational enterprise groups and large domestic groups in the Union was published in the Official Journal of the European Union.

Concerning the Corporate Income Tax, it represents an important additional step in the link between taxation and accounting. This is a major challenge (at accounting level, taxation, systems’ adaptation, etc.), which represents a paradigm shift in international taxation.

In accordance with our domestic legislation, and with the aim of improving the citizens’ involvement in the procedure for drafting regulations with the status of law, the Ministry of Finance and the Civil Service has published a document subject to prior public consultation on the Directive’s transposition. This document analyses the main features of the regulation to be transposed, and provides some clarity on a regulation which technical and practical complexity represents an unprecedented challenge in the already complex world of International Taxation.

This Tax Alert (in English and Spanish) summarises the main aspects of the Directive, with the help in interpreting it provided by the document submitted for consultation by the Ministry.

In any case, and according to article 56 of the Directive, its transposition has to be in force by December 31, 2023, in order to apply to tax periods starting from that date (in practice, 2024).

We remain at your disposal should you have any doubt or require clarifications in this regard.