Past CEE webinar: Pillar 2 GloBE - regional perspective and useful tools

In our February 2024 webinar focused on Central & Eastern Europe, we delved into the implementation of EU Minimum Tax Directive (Pillar 2), as well as key issues and upcoming requirements for multinational groups operating in the region, and assessed the Mazars business solution can be helpful clients navigate through this journey.

Our regional tax experts covered mainly Pillar 2 updates and solutions in Austria, Croatia, Czech Republic, Germany, Hungary, and Romania.

Key topics on the agenda

• Overview and scope of the minimum global effective tax rate
• Presentation of main concepts: ETR, IIR, UTPR and QDMTT
• Country overview: Status of legislation implementation, particularities of local rules compared to the EU Directive, application of safe harbour rules
• Getting started with the Pillar 2 solution. A four step, pragmatic solution carefully designed to fit your needs, that quickly identifies the required actions, and transparency regarding your compliance with the GloBE regulations.
• Q&A session where our regional experts answered your specific questions

The EU Directive context

EU Directive 2022/2523 sets forth rules for the implementation of a global minimum level of taxation for large multinational groups and large-scale domestic groups operating in the EU (Pillar 2). The Directive transposing deadline into national legislations was the end of 2023, so we will look into the progress and status of the CEE countries during our webinar as well.

Taxpayers members of a multinational group or a large-scale domestic group located in an EU Member State, with annual revenue exceeding EUR 750 million in the last two of the four fiscal years immediately preceding the reporting year are subject to Pillar 2 obligations.

The Directive provides a mechanism based on three interdependent model rules commonly referred to as the Global anti-Base Erosion (GloBE), according to which a top-up tax should be collected in instances in which the Effective income Tax Rate (ETR) of a multinational group in a specific jurisdiction is below the Minimum Tax Rate (MTR) of 15%.