BDO Corporate Tax News

European Union - Commission initiates second stage of infringement procedure relating to implementation of Pillar Two directive

The European Commission announced on 23 May 2024 that it has decided to send a reasoned opinion to six EU member states—Cyprus, Latvia, Lithuania, Poland, Portugal and Spain—for failing to notify the Commission of the measures for the transposition into national law of the 2022 EU global minimum taxation directive (i.e., the Pillar Two directive). EU member states were required to transpose the directive into their national laws by 31 December 2023.

This action initiates the second stage of the EU infringement procedure whereby the Commission sends a formal request for member states to notify the Commission of steps taken to comply with EU law. The first stage involves the Commission sending a warning letter to noncompliant member states giving them two months to respond (for prior coverage, see the article in the February 2024 issue of Corporate Tax News).

The six EU member states have two months to notify the European Commission of the measures taken. Failure to comply could result in referral to the Court of Justice of the European Union.

Susan Lyons
BDO Global
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