DAC9: New Rules to Extend Cooperation between Tax Authorities

In order to strengthen the global transparency, the Council has recently adopted new rules (known as DAC9) to enhance cooperation and information exchange between tax authorities. The main goal behind new rules is to make sure that multinational companies with group turnover of at least USD 750 million per year pay their corporate tax in full.

The new regulation is aimed to amend existing Pillar 2 Directive to ensure that large international and domestic companies pay their corporate tax at minimum of 15%.

Key Provisions of DAC9:

• Increased Transparency: the new regulation enhances the new framework for automatic exchange of information between tax authorities of different Member States.
• Central Filing: only one company from the group will be assigned to file the respective reporting for the whole group. Currently, every company from a group is expected to file their own reporting, which increases the pressure and paperwork for the tax authorities involved.

It is expected that the new regulation will come into force by the end of 2025. Once adopted, the first tax filing under DAC9 should be filed by the end of June 2026.