On Nov. 28, SLK PRL announced Act 477 amending Act 507/2023 coll.
SLK PRL announced adoption of act amending Act 507/2023 on compensatory tax to ensure minimum tax of multinational business groups, large national group, Tax code.
Registered in Sep. draft underwent legislative procedure to final adoption on Nov. 28.
Draft, now act, relates to Directive based on global model rules adopted by OECD/G20 Inclusive Framework in Dec. 2021 in Tax Challenges Arising from Digitalisation of the Economy - Global Model Rules against Base Erosion (Second Pillar).
To clarify, complement global model rules application OECD/G20 Inclusive Framework issued administrative guidelines on global model rules against base erosion in 2023.
The guidelines are not part of the Directive, yet EU States committed, by statement of EU Economic and Financial Affairs Council of Nov. 2023, to apply them in a way that avoids inconsistencies or applicability of different standards.
As guidelines are binding, draft is to implement guidelines approved so far, while also necessary to ensure implementation of all conclusions arising from them, in certain cases, for rule to be clearly enshrined in law to ensure higher degree of legal certainty.
Changes in act are general technical clarifications, supplementary to existing rules.
Act has clarifications and amendments in parts such as calculation of eligible income or eligible loss of basic entity, calculation of amount of adjusted included taxes.
Clarifies definitions, supplements rules for calculating amount of excluded income based on economic substance, has simplified calculations for insignificant entities.
In implementing it, OECD Global Model Rules, accompanying documents published for them to be used as interpretative tool, mainly document Tax Challenges Arising from Digitalization of Economy - Commentary on Global Model Rules Against Base Erosion.
Effectiveness
Act 477 of Nov. 28, 2024 will enter into force on Dec. 31, 2024, except for arts II and III that will enter into force on Jan. 1, 2025.
