The European Commission has adopted a new proposal (DAC9) to help companies with their Pillar 2 filing obligations (i.e. with respect to top-up taxes).

On 28 October 2024, the European Commission adopted a proposal to amend the Directive on administrative cooperation in the field of taxation (Directive 2011/16/EU – DAC). The aim is to make it easier for companies to comply with their information obligations under Pillar 2 (Directive (EU) 2022/2523).

Standardised form

According to DAC9, multinationals could submit only one central level information report for the entire group. This would simplify the filing process greatly and reduce the administrative burden for multinational companies.

To achieve this, the DAC9 proposal establishes a system for the exchange of information between tax authorities and introduces a standardised form that multinational enterprises and large domestic groups will have to use to report certain tax information.

The Commission will also be able to update the form in line with any changes to the internationally agreed form to ensure rapid harmonisation. This is in line with the EU objective to simplify and rationalise reporting requirements and make it easier for companies to comply with the rules.

Further steps

Once adopted by the EU Council, governments of the EU countries will have until 31 December 2025 to put DAC9 into practice. For countries that have decided to postpone the implementation of Pillar 2, the same deadline will apply for the implementation of DAC9 as for Pillar 2.

Although it may still take some time to approve the amendment to the Directive, in general, nothing seems to prevent its approval.

Multinational enterprises are expected to file their first information report by 30 June 2026, as required by Pillar 2. The competent tax authorities must exchange this information with each other by 31 December 2026 at the latest.

In the Czech Republic, the legislation already provides for the possibility of filing only one information report within a group.

If you will be subject to the regulation of top-up taxes (in the Czech Republic or abroad) or if you are interested in this area, please, do not hesitate to contact us.