Global minimum level of taxation for multinational enterprises in the EU

Adapting tax systems to globalisation and digitalisation has been the subject of discussions and reforms in international forums and the EU over recent decades. One of the aims is to make sure large multinational enterprises (MNEs) pay a minimum level of tax on the income arising in each jurisdiction in which they operate. At global level, an agreement was found last October within the Organisation for Economic Co-operation and Development (OECD) inclusive framework. A December 2021 European Commission proposal for a directive would implement the internationally agreed standard to ensure minimum effective taxation of MNEs. The report on the proposal by the European Parliament's Committee on Economic and Monetary Affairs is scheduled for a plenary vote in May.