On 28 October 2024, the European Commission adopted the DAC9 proposal amending the directive on administrative cooperation in the field of taxation. The DAC9 proposal aims at facilitating the compliance obligations of large multinationals and domestic groups under the EU minimum tax directive by effectively implementing the GloBE information return developed by the OECD/G20 Inclusive Framework into EU law. This is envisaged by introducing a standard form in line with the GloBE information return and setting up a system for the exchange of information between the tax authorities of the EU member states.
Under DAC9, multinationals will be able to file their GloBE (Pillar Two) information return centrally through their ultimate parent entity or designated filing entity with the tax authorities of one EU member state. In the absence of the DAC9 proposal, each company that forms part of a multinational group would have to file their information return in the EU country in which it is based.
DAC9 is expected to apply in respect of fiscal year 2024, with a reporting obligation due by 30 June 2026 at the latest, as envisaged in articles 51 and 44(7) of the EU directive. Thus, DAC9 is a welcome development for simplifying the GloBE (Pillar Two) filing process in the EU and reducing related administrative costs.
Once the DAC9 proposal is adopted by the EU Council, EU member states will be required to transpose DAC9 into their national laws by 31 December 2025 (regardless of whether the member state has elected to defer implementation of the Pillar Two directive). Further, the EU member states will need to automatically exchange with each other the GloBE (Pillar Two) information by 31 December 2026.
Frederik Boulogne
BDO in Netherlands
Ross Robertson
BDO in United Kingdom
Under DAC9, multinationals will be able to file their GloBE (Pillar Two) information return centrally through their ultimate parent entity or designated filing entity with the tax authorities of one EU member state. In the absence of the DAC9 proposal, each company that forms part of a multinational group would have to file their information return in the EU country in which it is based.
DAC9 is expected to apply in respect of fiscal year 2024, with a reporting obligation due by 30 June 2026 at the latest, as envisaged in articles 51 and 44(7) of the EU directive. Thus, DAC9 is a welcome development for simplifying the GloBE (Pillar Two) filing process in the EU and reducing related administrative costs.
Once the DAC9 proposal is adopted by the EU Council, EU member states will be required to transpose DAC9 into their national laws by 31 December 2025 (regardless of whether the member state has elected to defer implementation of the Pillar Two directive). Further, the EU member states will need to automatically exchange with each other the GloBE (Pillar Two) information by 31 December 2026.
Frederik Boulogne
BDO in Netherlands
Ross Robertson
BDO in United Kingdom