BDO Corporate Tax News

European Union - Infringement proceedings against nine member states for failure to notify Commission about minimum taxation directive implementation

The European Commission announced on 25 January 2024 that it has initiated infringement proceedings against nine EU member states for failure to notify the Commission about measures transposing the EU global minimum taxation directive into their domestic laws by the 31 December 2023 deadline. The following member states have received letters of formal notice from the Commission: Estonia, Greece, Spain, Cyprus, Latvia, Lithuania, Malta, Poland and Portugal.

These proceedings are part of a broader package of infringement proceedings started against 26 member states that have not notified full transposition measures for 11 EU directives in the fields of justice, internal market and small and medium-sized entities, tax and customs, health, climate, home affairs and financial services. Affected member states have two months to respond, after which the Commission may send a reasoned opinion formally requesting compliance. Continuing noncompliance could result in a referral to the Court of Justice of the European Union and potential penalties.

Susan Lyons
BDO Global