EU Legal Action Against Member States Over Tax Rule Compliance

The European Commission is suing Spain, Cyprus, Poland, and Portugal for not implementing rules to ensure a global minimum tax for multinational companies. These nations were required to enforce laws by the end of 2023. Spain plans to comply soon, while Portugal has not commented.

The European Commission has taken legal action against Spain, Cyprus, Poland, and Portugal for failing to implement rules aimed at ensuring a global minimum tax rate for multinational companies. The Commission announced the lawsuits on Thursday, highlighting a lack of compliance from these EU member states.

Under EU guidelines, all four countries were supposed to pass the necessary legislation by the end of 2023, and the Commission has yet to receive any notification regarding their compliance. Spain's Budget Minister, Maria Jesus Montero, acknowledged the delay but assured that Spain, a leader in advocating for a minimum tax, plans to meet EU requirements soon. She stated that relevant legislation is expected to pass by year's end.

While Spain has committed to compliance, the Portuguese government offered no immediate comment when contacted by Reuters. As the situation develops, the Commission's legal pursuit indicates its firm stance on global tax uniformity.

(With inputs from agencies.)