Answer given by Mr Gentiloni on behalf of the European Commission
The Commission is fully committed to ensuring the timely implementation of the global agreement reached by the Inclusive Framework on 8 October 2021 on a two-pillar solution to address tax challenges arising from the digitalisation of the economy.
On 22 December 2021 the Commission put forward a proposal for a directive implementing the global agreement on minimum effective taxation.
The proposal follows closely the OECD Model Rules agreed by the Inclusive Framework on 14 December 2021. The proposed Directive applies to large groups with consolidated financial revenues of at least EUR 750 million a year, operating in an EU Member State.
Regional aid, including for the outermost regions, aims to support economic development in disadvantaged areas of the EU, while ensuring a level playing field between Member States.
The EU guidelines on regional state aid allow Member States to support the least favoured European regions in catching up and to reduce disparities in terms of economic well-being, income and unemployment.
The Commission’s proposal does not conflict with the application of such state aid. While the 15% minimum tax rate applies to all income including state aid granted, it is applied after a deduction for a substance carve-out, determined as a percentage of payroll costs and tangible assets, is made.
The Commission does not intend to amend the system of regional state aids as a follow-up to the Commission’s proposal on ensuring minimum effective taxation.
This system already provides substantial support to promote the economic development, notably of outermost regions and areas where the standard of living is abnormally low or wherethere is serious underemployment.