The following post was originally included as part of our recently published memorandum “Selected Issues for Boards of Directors in 2023”.
With the various global crises, budget spending to address inflation and post-COVID-19 pandemic effects continuing to weigh on fiscal budgets globally, governments will at some point soon need to recoup lost revenue.
As regards the EU, there are a large number of current and upcoming legal developments that will significantly change the tax landscape and need to be monitored.
Most notably, in mid-December 2022, the EU Member States agreed on the EU Directive implementing Pillar 2 on the 15% effective minimum corporate tax rate that will need to be transposed into national laws by December 31, 2023. During 2023, expect further focus related to discussions on Pillar 1 (the digital nexus or, alternatively, digital services taxes), DEBRA (Debt-equity bias reduction allowance), Unshell (ATAD 3), SAFE (Securing the activity framework of enablers) and BEFIT (Business in Europe: Framework for Income Taxation).
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For a PDF of the full memorandum, please click here.