This article has been updated. It was originally published on 25 April 2025
The ninth amendment of Directive 2011/16/EU on administrative cooperation in the field of taxation (i.e., DAC9) was published in the EU official journal on 6 May 2025 and became effective the following day. DAC9, adopted by the European Council on 14 April, facilitates the compliance of large multinationals and domestic groups (MNEs) with the EU Minimum Taxation Directive, the directive that implements the OECD’s Pillar Two initiative into EU law. DAC9 streamlines in-scope MNEs’ filing obligations, introduces a centralised framework for the exchange of the information in the filings and updates the existing directive on administrative cooperation by:
- Introducing a standard form, the top-up tax information return (TTIR), that is aligned with the OECD’s GloBE Information Return (GIR) and allows the group to file a single return; and
- Setting up a central filing system for the exchange of information between the tax authorities of the EU member states in line with the OECD Multilateral Competent Authority Agreement on the Exchange of GloBE Information (MCAA).
DAC9 was initially proposed by the European Commission on 28 October 2024, with subsequent consultations held with the European Parliament.
Overview of DAC9
Under the EU Minimum Taxation Directive, each constituent entity (CE) is required to file its TTIR in the member state where it is located. However, an ultimate parent entity (UPE) or a designated filing entity can file on behalf of the entire MNE group if exchange of information arrangements are in place between the jurisdictions involved. Under DAC9, the UPE or designated filing entity will be able to centrally file GloBE information with the tax authorities of a single EU member state.
DAC9 largely follows the GIR and the MCAA in respect of the information to be reported by MNEs and the information to be exchanged with jurisdictions having taxing rights. The standard template for the TTIR is designed to ensure that the information included is “sufficiently comprehensive” to allow the tax authorities to assess the accuracy of a CE’s tax liability. It includes a section with general information on the MNE group as a whole, including its corporate structure and a high-level summary of the application of the Minimum Taxation Directive. It also includes jurisdictional sections containing information on the detailed application of the qualified income inclusion rule (IIR), qualified undertaxed profits rule (UTPR) and/or qualified domestic top-up tax (QDMTT) in respect of each jurisdiction where the MNE group operates.
DAC9 adopts a “dissemination approach,” under which the member state that receives the TTIR communicates the relevant parts of the return to relevant member states. The UPE’s jurisdiction receives the general section of the TTIR and all the jurisdictional sections. A jurisdiction having taxing rights under a qualified IIR or qualified UTPR receives the general section of the TTIR and the jurisdictional sections of the low-taxed CEs located there. A jurisdiction having taxing rights under a QDMTT receives the general section of the TTIR, except for the high-level summary, and the jurisdictional sections of the low-taxed CEs located there. Finally, a UTPR jurisdiction with a UTPR percentage of zero only will receive the information on the attribution of the top-up tax under the UTPR in respect of that jurisdiction.
The framework for the automatic exchange of tax information between the tax administrations of the member states will ensure that once a covered group files its top-up tax information return in one member state, the relevant information will be disseminated to the tax authorities in other member states in which the MNE group operates.
Qualifying reporting entities must file a TTIR within 15 months after the last day of the reporting fiscal year (within 18 months after the last day of the reporting fiscal year for the first reporting year).
Effective Date and Next Steps
EU member states must transpose the DAC9 directive into their national laws by 31 December 2025 (even if they have exercised the option to postpone the implementation of the Minimum Taxation Directive).
DAC9 applies in respect of fiscal year 2024, with the first reporting due by 30 June 2026 at the latest. The first automatic exchange must take place within six months following the reporting deadline, while for subsequent years, the reporting will be due on 31 March and the automatic exchange will need to take place within three months following the reporting deadline.
BDO Insight
DAC9 is designed to complement the EU Minimum Taxation Directive, which ensures a global minimum tax rate of 15% for covered MNEs and to facilitate compliance with a centralised filing option.
The DAC9 rules have a number of benefits such as simplifying filing and streamlining reporting for covered MNEs and the exchange of information between the tax authorities of the EU member states will increase transparency in tax administration. Affected MNEs should examine their current tax reporting processes and structures so they can take any necessary steps to align them with the DAC9 requirements.
Frederik Boulogne
Nathalie Bravo
BDO in Netherlands