Taxation: administrative cooperation

The European Parliament adopted by 608 votes to 33, with 8 abstentions, a legislative resolution on the proposal for a Council directive amending Directive 2011/16/EU on administrative cooperation in the field of taxation.

Parliament approved the proposal without amendment.

As a reminder, the proposal is closely linked with the 2022 Pillar 2 Directive, which aims to ensure a minimum level of global taxation for multinational enterprise groups and large national groups in the Union.

The proposal aims to simplify the filing process and reduce the administrative burden on MNE groups to comply with their reporting obligations under the Pillar 2 Directive. To this end, it establishes a system for authorities to exchange information with each other and introduces a standard form, in line with the one developed by the OECD/G20 Inclusive Framework, that MNE groups and large domestic groups will have to use to report certain tax information.

More specifically, the proposal will:

- provide for a uniform template for multinational enterprises groups (MNEs) and large-scale domestic groups in the scope of Directive 2022/2523/EU to file their Top-up tax information returns. This will significantly reduce their administrative burden since the Top-up tax information return will be the same in all Member States;

- enable MNEs falling within the scope of Directive 2022/2523/EU to file their Top-up tax information return only once for the whole MNE (central filing as opposed to the local filing method), which will reduce their administrative burden.