- The EC presented a proposal for a directive (referred to as DAC9) that would amend the EU’s directive on administrative cooperation, to assist multinational enterprise (MNE) groups with their obligations to exchange information as required by the EU Pillar Two directive.
- DAC9 complements the Pillar Two directive by allowing MNEs within the scope of the directive to submit the top-up tax information return in only one member state. As a result, MNEs would file their information return centrally through the ultimate parent entity (UPE) or through the designated filing entity instead of locally in each jurisdiction where there is a constituent entity (subsidiary or permanent establishment). The tax administration of the member state that receives the information would automatically exchange this information with the other member states.
- DAC9 introduces a standard form, in line with that developed by the OECD/G20 Inclusive Framework on BEPS, which MNEs would have to use to report.
- Timing: Once adopted by the EU Council, member states (including those that have chosen to delay implementation of the Pillar Two directive) would have until 31 December 2025 to implement DAC9. MNEs are expected to file their first top-up tax information return by 30 June 2026, as required under the Pillar Two Directive. The relevant tax authorities would be required to exchange this information between themselves by 31 December 2026.
Resources (click to open)
Commission adopts proposal to ease filing obligations under Pillar Two directive (Deloitte tax@hand, October 2024)
