On 6 May 2025, the amendments to the European Directive on Administrative Cooperation (‘DAC 9’) were published in the Official Journal of the EU, following its adoption by the European Council on 14 April 2025.
What is DAC9?
The amendments contained in DAC9 allow the simplification of reporting for large groups with respect to Pillar 2 (or the global minimum tax).
In the context of Pillar 2, the general rule is that a constituent entity must file a GloBE Information Return (‘GIR’) with its tax administration (‘local filing’). However, the EU Directive on the minimum effective corporate taxation (Directive (EU) 2022/2523) provides a derogation pursuant to which a constituent entity is not obliged to file a GIR with its tax administration if one has been filed by its ultimate parent entity or by a designated filing entity located in a jurisdiction that has, for the reporting fiscal year, a qualifying competent authority agreement in effect with the Member State in which the constituent entity is located (‘central filing’).
One of the objectives of DAC9 is to enable the central filing of the GIR by constituting such a qualifying competent authority agreement between Member States.
In addition, DAC9 organises an exchange mechanism between the tax authorities of the Member States that enables them to share relevant sections of the GIR or any other required information.
Another key element is that Member States are requested to take necessary measures to require the filing constituent entities of MNE groups to use the standard template to fulfil their filing obligations under the global minimum tax.
For more details, listen to PwC’s Tax Bites Podcast episode on the DAC9 proposal.
When to expect local implementation and the first exchanges of information?
Member States will have to adopt and publish by 31 December 2025 the laws, regulations and administrative provisions necessary to comply with this directive.
The Member States where the GIR is filed should communicate relevant information to other Member States no later than 3 months after the filing. This deadline is prolonged to 6 months for the first reporting fiscal year.
For the first reporting fiscal year aligned with calendar year 2024, the first GIR is due 30 June 2026, and information exchanges between tax authorities must be completed by 31 December 2026. Additionally, in order to accommodate any delays in the implementation of this new system, the first exchanges will take place no earlier than 1 December 2026.
Countries (such as Malta) opting to delay the implementation of the Pillar 2 Directive are still required to transpose DAC9 into national law by the same deadline.
Let’s connect!
For more details on DAC9 and Pillar 2 compliance requirements, reach out to your regular contact person or contact Pieter Deré, Koen De Grave or Maxim Allart.
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