FT: Poland To Drop Opposition To Min Corporate Tax Rate

TheFT is reporting that Poland is set to drop its long-standing opposition to an EU directive that seeks to implement OECD plans to enact a minimum 15% corporation tax rate globally.

• The FT reports: "A decision by Poland to drop its veto would represent a leap forward for the EU, following last year’s international agreement in which 136 countries backed the introduction of a new 15 per cent minimum effective corporate tax rate on large businesses, known as Pillar Two....The EU is working to translate the deal on Pillar Two into domestic law via a directive, which will require unanimous consent."
• There have been claims that Warsaw held up its approval for the directive following the EU's refusal to agree to Poland's EUR36bn finance plan as part of the EU's Covid Recovery and Resilience Facility.
• Earlier in June Commission President Ursula von der Leyen and Polish PM Mateusz Morawiecki reached and agreement on the funds. The FT reports that there are concerns that Hungary, which has not yet had its funding approved, could also seek to hold up the corporate tax directive in its own attempt to extract concessions from the EU.