Poland blocks EU compromise on global agreement on minimum corporate tax

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PARIS (Reuters) – Poland on Tuesday blocked a compromise proposed by France on how to implement a minimum corporate tax in the European Union, a further blow to a global overhaul of international tax rules.

Poland’s revenue chief said that despite the amendments, Warsaw was still concerned that the minimum tax could come into force without the new rules preventing large multinationals from making profits in the most favorable countries.

Nearly 140 countries, including Poland, reached a two-pronged deal in October on a 15% minimum tax rate on multinationals and agreed to make it harder for companies such as Alphabet’s Google, Amazon and Facebook’s Meta avoid tax by reserving profits to low-tax jurisdictions.

France, which holds the EU’s rotating presidency for six months, has pushed for swift implementation of the deal in the 27-nation bloc, where tax issues require unanimous approval.

Poland was one of four countries to block an attempt last month to strike a compromise, but Sweden, Estonia and Malta dropped their opposition after adjustments to the deal.

“It (the proposed compromise) is not a legally binding solution to ensure that Pillar I and Pillar II come into force at a similar time,” Polish tax chief Magdalena Rzeczkowska told a meeting in Brussels. .

French Finance Minister Bruno Le Maire said he was “absolutely not convinced” by Poland’s position, that Warsaw’s concerns had been taken into account and that other member states had also made concessions.

The Mayor said he would put the issue back on the agenda of the next monthly meeting of EU finance ministers.

(Reporting by Leigh Thomas; Editing by Alexander Smith)

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