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European Commission sues Poland for lack of tax on international companies

03.10.2024 15:40
The lawsuit is related to the failure to implement the second pillar of the global tax reform. The European Commission has sued four countries for not having a minimum tax on foreign companies and capital groups. In addition to Poland, Spain, Portugal, and Cyprus face similar issues.
The European Commission headquarters building in Brussels, Belgium on 02102024.
The European Commission headquarters building in Brussels, Belgium on 02/10/2024. PAP/Wiktor Dąbkowski

All EU countries were required to introduce a global minimum tax by the end of 2023. This regulation, supported by 140 countries worldwide, aims to reform the taxation of high-income companies that have historically paid very low taxes globally.

The EU Council directive from December 2022 established a 15% minimum corporate income tax (CIT). It will apply to large capital groups operating in the EU with revenues of at least €750 million. According to the new rules, giant companies must pay a minimum tax of 15% on this amount.

The transposition of the Directive is crucial for effectively implementing the minimum taxation component of the G20/OECD's reform of international taxation, which aims to limit the competitive lowering of corporate tax rates.

Brussels has stated that the four countries being sued failed to inform it about the implementation of the new regulations, prompting the lawsuit at the Court of Justice of the European Union, while nearly all other EU member states have complied with this requirement.

On September 25, the Polish government submitted a bill regarding this matter to the Sejm. On the same day, the document was sent for its first reading during a parliamentary session.

Source: IAR/ec.europa.eu

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