Background & Purpose

Multinational companies sometimes shift profits to countries with very low taxes to pay less overall. To stop this tax shifting and ensure fair contributions, international rules require large companies to pay a baseline tax.

Proposals & Debate

The government proposed implementing an EU directive requiring corporate groups with revenues of at least 750 million euros to pay a minimum 15 percent tax. Parliament reviewed the proposal and approved it, including a specific adjustment regarding accounting standards.

The Decision

Parliament approved the new tax legislation, ensuring large corporations face a 15 percent floor on their taxes.

Does this affect you?

  • Large multinational corporations: Must ensure their effective tax rate reaches at least 15 percent across operations.
  • Corporate finance departments: Must adapt their tax reporting and accounting standards to comply with the new rules.

In Practice

  • Corporate groups with yearly revenues of 750 million euros or more must pay an effective tax rate of at least 15 percent.
  • Authorities, non-profit organizations, and pension funds are completely exempt from the new tax rules.
  • The calculation of taxes will follow adjusted guidelines regarding accounting standards decided by parliament.