Tag: IIR (Income Inclusion Rules)

Pillar Two mechanism requiring a parent entity to pay a top-up tax on the low-taxed income of constituent entities, bringing the effective tax rate to the 15% global minimum. Disputes typically arise over domestic implementation, treaty compatibility, and constitutional compliance with EU and national law.

Belgium vs American Free Enterprise Chamber of Commerce, July 2025, Constitutional Court of Belgium, Case No 104/2025 (ECLI:BE:GHCC:2025:ARR.104)

Belgium vs American Free Enterprise Chamber of Commerce, July 2025, Constitutional Court of Belgium, Case No 104/2025 (ECLI:BE:GHCC:2025:ARR.104)

/ Legality - Legitimacy - Constitutional, Article 49 TFEU, Article 56 TFEU, Controlled Foreign Companies (CFC), Council Directive (EU) 2022/2523, Global minimum tax, GloBE rules, IIR (Income Inclusion Rules), OECD Pillar II, Pillar 2, Pillar II, Principle of fiscal territoriality, Request for a preliminary ruling, Under Taxed Payment Rule (UTPR), UTPR surcharge
A US-based non-profit chamber of commerce sought annulment of Articles 35 and 36 of Belgium's December 2023 law implementing the OECD Pillar Two global minimum tax. The applicants argued the provisions breached constitutional equality and property rights and conflicted with EU law. Belgium's Constitutional Court dismissed the action in July 2025, upholding the validity of the minimum tax rules and rejecting the request for an EU preliminary ruling ... Read more