On 15 December, the EU Council formally adopted the EU minimum tax Directive by written procedure. The written procedure ended with this unanimous agreement, notwithstanding the fact that Hungary abstained from the final vote, and Sweden made a written observation on a specific provision of the Directive. The Directive will enter into force on the day following its publication in the Official Journal of the European Union. Member States shall transpose the Directive into their domestic law by 31 December 2023. All Member States voted in favour of the accompanying Council Statement. This outcome follows a week of speculation on the deal after Poland reserved its support until yesterday’s EU Council meeting.
The overall package passed at the EU Council meeting includes the EU minimum tax Directive, funding for Ukraine, a Council decision for the protection of the Union budget against breaches of the rule of law in Hungary (rule of law conditionality mechanism) and a further Council decision which approves the Commission's assessment of Hungary's recovery and resilience plan.
International Tax and Treasury