Malta has told the European Council that it will not be giving the green light to a Commission proposal for a global minimum tax for multinational companies, without giving its reservations a proper hearing.

Finance ministers held a policy debate on the proposed Council directive on ensuring a global minimum level of taxation for multinational groups, following the European Commission’s proposal for a directive at the end of December.

Finance Minister Clyde Caruana informed his counterparts that Malta’s concerns should be addressed if the Council is to find support on the taxation proposal.

Taxation is a sovereign issue that requires unanimous approval within the Council of Ministers, the highest decision-making body in the EU.

Caruana told ministers that he acknowledged global efforts to bring the tax deal into effect, but said Malta’s reservations to the OECD had not received any feedback.

“I understand the motivation behind all this and the implications, however I cannot ignore certain issues that revolve around the fairness and practicality of implementation. This is a political process and we must respond to our people, “said Caruana.

Caruana said that Malta will not be withdrawing its support for the taxation proposal but said that it will discuss its concerns during the Council’s working groups. “I cannot ignore the serious, various concerns about how all this is affecting our country,” he told finance ministers.

In their speeches, ministers confirmed the priority of the proposal, with a majority supporting the transposition into the agreed rules of international corporate taxation.

The aim of the directive is to transpose OECD rules for base erosion and profit shifting (BEPS) – an international agreement that brings together 137 countries and jurisdictions – to European corporate tax rules. .

French Minister Bruno Le Maire, who chaired the meeting, echoed the Council’s official statement.

“The agreement of 8 October 2021 is a success for the international community and, above all, a European success. It will provide justice, efficiency and stability for our businesses and citizens. I am very pleased to conclude from today’s discussion that we all share the desire to make rapid progress. The EU is at the forefront of this historic reform and this is good news, “said the French Minister for Economic Affairs, Finance and Recovery.