Activities of Eugen JURZYCA related to 2021/0433(CNS)
Plenary speeches (1)
Minimum level of taxation for multinational groups (debate)
Shadow reports (1)
REPORT on the proposal for a Council directive on ensuring a global minimum level of taxation for multinational groups in the Union
Amendments (23)
Amendment 104 #
Proposal for a directive
Recital 24 a (new)
Recital 24 a (new)
(24 a) The proposal lacks a comprehensive impact assessment that shall be carried out before this directive enters into force; Impact assessment needs to take into account a scenario that USA and other major trading partners do not implement OECD Model Rules or implement them with a significant delay.
Amendment 105 #
Proposal for a directive
Recital 24 b (new)
Recital 24 b (new)
(24 b) The growing importance of intangible assets in value creation highlights further flaws in the new international CIT rules.
Amendment 106 #
Proposal for a directive
Recital 24 c (new)
Recital 24 c (new)
(24 c) It is of the utmost importance that the final version of the OECD Model Rules is transposed into this directive without any unnecessary additions which could render the Member States and EU companies not competitive with the rest of the world.
Amendment 107 #
Proposal for a directive
Recital 24 d (new)
Recital 24 d (new)
(24 d) The directive shall be interpreted in line with the OECD Commentary to the GloBE Model Rules, provided that these are in compliance with EU law.
Amendment 121 #
Proposal for a directive
Article 3 – paragraph 1 – point 18 – introductory part
Article 3 – paragraph 1 – point 18 – introductory part
(18) ‘controlling interest’ means an oOwnership iInterest in an eEntity wherebysuch that the interest holder is required, or would have been: (a) is required, to consolidate the assets, liabilities, income, expenses and cash flows of the eEntity on a line-by-line basis, in accordance with an aAcceptable fFinancial aAccounting standardStandard; or (b) would have been required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis if the interest holder had prepared Consolidated Financial Statements;
Amendment 122 #
Proposal for a directive
Article 3 – paragraph 1 – point 20
Article 3 – paragraph 1 – point 20
(20) ‘ownership interest’ means any equity interest that carries rights to the profits, capital or reserves of an eEntity, or a pincluding the profits, capital or reserves of a Main Entity’s Permanent eEstablishment;
Amendment 125 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 – point a
Article 3 – paragraph 1 – point 25 – point a
(a) it is designed to pool assets which may be financial orand non-financial assets, from a number of mostly non-related investorsinvestors some of which are not connected;
Amendment 126 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 – point e
Article 3 – paragraph 1 – point 25 – point e
(e) its investors have a right to return from the assets of the fund or income earned on those assets, based on the contribution they mades made by those investors;
Amendment 128 #
Proposal for a directive
Article 3 – paragraph 1 – point 32 – point a
Article 3 – paragraph 1 – point 32 – point a
(a) a refundable tax credit designed in such a way such that it is payable asmust be paid as cash payment oror available as cash equivalent to a constituent entitys within four years from the date when the cwhen a Constituent eEntity is entitled tosatisfies the conditions for receiveing the refundable tax credit under the laws of the jurisdiction granting the credit; or
Amendment 131 #
Proposal for a directive
Article 3 – paragraph 1 – point 32 – point b
Article 3 – paragraph 1 – point 32 – point b
(b) if theA tax credit that is refundable in part, the portion of the r is a Qualified Refundable tTax cCredit that is payable aso the extent it must be paid as cash payment or aor available as cash equivalent to a cs within four years from when a Constituent eEntity withinsatisfies the conditions four years from the date when the constituent entity is entitled to receive the partial refundable tax credit;receiving the credit under the laws of the jurisdiction granting the credit. A Qualified Refundable Tax Credit does not include any amount of tax creditable or refundable pursuant to a Qualified Imputation Tax or a Disqualified Refundable Imputation Tax.
Amendment 139 #
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. The IIR top-up tax due by a pA Parent eEntity in respect’s Allocable Share of the Top-up Tax of a lLow-tTaxed cConstituent eEntity pursuant to Articles 5, 6 and 7 shall beis an amount equal to the tTop-up tTax of the lLow-tTaxed cConstituent eEntity, as computed in accordance with Article 26, multiplied by the pParent eEntity’s allocable share in such top-up taxInclusion Ratio for the Low- Taxed Constituent Entity for the fFiscal yYear.
Amendment 140 #
Proposal for a directive
Article 8 – paragraph 2
Article 8 – paragraph 2
2. A pParent eEntity’s allocable share in the top-up tax with respect to a lInclusion Ratio for a Low-Taxed Constituent Entity for a Fiscal Year is the ratio of: (a) the GloBE Income of the Low-Taxed Constituent Entity for the Fiscal Year, reduced by the amount of such income attributable to Ownership Interests held by other owners, to (b) the GloBE Income of the Low-Taxed Constituent Entity for the Fiscal Year. The amount of GloBE Income attributable to Ownership Interests in a Low-Taxed Constituent Entity held by other owners is the amount that would have been treated as attributable to such owners under the principles of the Acceptable Financial Accounting Standard used in the Ultimate Parent Entity’s Consolidated Financial Statements if the Low-tTaxed cConstituent eEntity shall be the proportion of the parent entity’s interest in the income’s net income were equal to its GloBE Income and: (a) the Parent Entity had prepared Consolidated Financial Statements in accordance with that accounting standard (the hypothetical Consolidated Financial Statements); (b) the Parent Entity owned a Controlling Interest in the Low-Taxed Constituent Entity such that all of the income and expenses of the Low-Taxed Constituent Entity were consolidated on a line-by-line basis with those of the Parent Entity in the hypothetical Consolidated Financial Statements; (c) all of the lLow-tTaxed constituent entity. Constituent Entity’s GloBE Income were attributable to transactions with persons that are not Group Entities; and (d) all Ownership Interests not directly or indirectly held by the Parent Entity were held by persons other than Group Entities.
Amendment 145 #
Proposal for a directive
Article 13 – paragraph 6 – introductory part
Article 13 – paragraph 6 – introductory part
6. The nNumber of eEmployees shall be the, for the purposes of the UTPR percentage, means the total number of employees on a full- time equivalent basis of all cthe Constituent eEntities locatedresident for tax purposes in the relevant tax jurisdiction, including. For this purpose, independent contractors provided that they participateing in the ordinary operating activities of the cConstituent eEntity are reported as employees.
Amendment 150 #
Proposal for a directive
Article 15 – paragraph 1 – point a – point i
Article 15 – paragraph 1 – point a – point i
(i) cany Covered tTaxes accrued as an expense and any current and deferred Covered Taxes included in the income tax expense, including Covered Taxes on income that is excluded from the GloBE Income or Loss computation;
Amendment 151 #
Proposal for a directive
Article 15 – paragraph 1 – point b – point i
Article 15 – paragraph 1 – point b – point i
(i) an odefined as Ownership iInterests in an eEntity of less than 10% (a “portfolio shareholding”) in respect of which a constituent entity is entitled to all or substantially all of the rights tothat are held by the MNE Group and that carry rights to less than 10% of the profits, capital or, reserves, irrespective of whether the constituent entity owns the legal ownership of such portfolio, for less than one yearor voting rights of that Entity at the date of the distribution or disposition; and
Amendment 205 #
Proposal for a directive
Article 44 – paragraph 2
Article 44 – paragraph 2
2. A constituent entity that does not comply with the requirement to file a top- up tax information return pursuant to Article 42 for a tax year within the prescribed deadline or makes a false declaration shall be charged an administrative pecuniary penalty amounting to 5 % of its turnover in the relevant fiscal yearspecified by Member State in accordance with the national law. Administrative pecuniary penalties shall be effective, proportionate and dissuasive. This penalty shall only apply after the constituent entity has not provided the top-up tax information return pursuant to Article 42, following any reminder issued, within a period of 6 months.
Amendment 222 #
Proposal for a directive
Article 47 – paragraph 4 – subparagraph 1
Article 47 – paragraph 4 – subparagraph 1
For MNE groups that are within the scope of this Directive when it enters into force, the five-year period referred to in paragraph 1 shall start on 1 January 20234.
Amendment 226 #
Proposal for a directive
Article 47 – paragraph 4 – subparagraph 2
Article 47 – paragraph 4 – subparagraph 2
For MNE groups that are within the scope of this Directive when it enters into force, the five-year period referred to in paragraph 2 shall start on 1 January 20245.
Amendment 233 #
Proposal for a directive
Article 50 – paragraph 2
Article 50 – paragraph 2
2. For large-scale domestic groups that are in scope of this Directive when it enters into force, the five-year period abovementioned shall start on 1 January 20234.
Amendment 235 #
Proposal for a directive
Article 51 – paragraph 3 a (new)
Article 51 – paragraph 3 a (new)
3 a. Before 01.01.2027, and then every 4 years, the Commission shall present a report to the European Parliament and the Council on the application of this Directive. The report shall assess at least the following: (a) whether any adjustments are needed to the definitions set out in this Directive, to ensure that the GloBE Model Rules are implemented uniformly and consistently with G20 members; (b) the impact of this Directive on the competitiveness of European economy, particularly in comparison to those G20 members who do not implement GloBE Model Rules; (c) the effects of this Directive on national laws, regulations and administrative provisions governing penalties; (d) the application of the administrative penalties; (e) the appropriateness and impact of expanding the scope of this Directive to EU based companies; (f) the cooperation between national competent authorities and the cooperation with third countries national authorities; (g) the total volume of top-up tax collected by each and individual Member State; (h) the number and a character of disputes occurring in the EU and between the Member States and third countries in relation to this Directive; (i) the administrative and economic costs of this Directive for Member States as a percentage of their GDP; (j) types and trends of unforeseen and inappropriate behaviour occurring in relation to this Directive.
Amendment 251 #
Proposal for a directive
Article 55 – paragraph 1
Article 55 – paragraph 1
Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 20223 provided that GloBE Model Rules were implemented by at least ten G20 members, including the USA.
Amendment 255 #
Proposal for a directive
Article 55 – paragraph 3
Article 55 – paragraph 3
They shall apply those provisions from 1 Januaryin respect of the fiscal years beginning as from 31 December 2023.
Amendment 260 #
Proposal for a directive
Article 55 – paragraph 4
Article 55 – paragraph 4
However, they shall apply the provisions necessary to comply with Articles 11, 12 and 13 from 1 Januaryin respect of the fiscal years beginning as from 31 December 2024.