On 11 March 2025, the Council of the EU reached a political agreement on a proposal, known as DAC 9, to amend the directive on administrative cooperation in tax matters. DAC 9 is closely linked to the Pillar 2 Directive, which aims to ensure a global minimum level of taxation for multinational enterprise groups (MNEs) and large-scale domestic groups in the EU.
DAC 9 incorporates the OECD's GloBE top-up tax information return into EU law and simplifies the filing obligations of MNEs. It allows MNEs to move away from local reporting to a centralised report filed by the ultimate parent entity of the MNE or by a designated entity, instead of each constituent entity of the group filing a separate report. DAC 9 also establishes a framework to facilitate the communication of top-up tax information returns to the other Member States in line with the OECD framework.
Member States will have until 31 December 2025 to implement DAC 9 into domestic law.
MNEs are expected to file their first top-up tax information return by 30 June 2026, as required under the Pillar 2 Directive. The relevant tax authorities must communicate this information to other Member States by 31 December 2026 at the latest.
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