Divergent country assessment deadlines for the tax on multinational enterprises (Pillar II)
The tax on multinational enterprises, which in the EU had to be established in accordance with EU Directive 2022/2523 of 14 December 2022, will be due for the first time on fiscal years beginning from 31 December 2023 (in most cases: accounting years starting from January 1, 2024). Although the EU Directive includes some administrative provisions (e.g., filing obligations), there are no provisions regarding assessment deadlines—i.e., the time available for the tax administration to assess and adjust tax for a given taxable period. Determining those deadlines is within the power of each Member State. The UK, which implemented the OECD Base Erosion and Profit Shifting (BEPS) Pillar Two rules, was likewise free to establish those deadlines in its domestic legislation.
The Bird & Bird Pillar Two tax team has drafted a chart indicating the applicable deadline in ten countries. The chart includes two columns: one stating the deadline itself, and the other providing an example of how long the local tax administration could assess tax on a “first” accounting year—assumed here to be the calendar year 2024. This chart highlights substantial differences between jurisdictions.
The table is provided for information purposes only. Specific rules may apply in each country, particularly with regard to the existence of multiple time limits (e.g., a standard time limit and a time limit in cases of fraud—the chart indicates the longest one), or the existence of grounds for suspending or interrupting these time limits. The members of the team are at your disposal to determine the time limit that applies in a particular case in their respective jurisdictions.
| Country | Assessment Deadline | Accounting year 2024 subject to audit/adjustment until end |
| Belgium | 4 years (from the 1st day following the end of the accounting year in question) | 2028 |
| Finland | 6 years (from the beginning of the calendar year following the end of the tax year in question) | 2030 |
| France | 5 years | 2029 |
| Germany | Usually 6 years (depending on circumstances) | 2030 |
| Hungary | 5 years (from the end of the year of the tax reporting deadline). Exceptions are possible. | 2030 |
| Italy | 7 years | 2031 |
| Luxemburg | 10 years | 2034 |
| Netherlands | up to 6 years and 7 months after the end of the first reporting year in which the tax debt arose (after the first reporting year, said period is reduced to 6 years and 4 months). | July 2032 |
| Spain | Usually 4 years (from the 1st day following the statutory filing period) | 2029 |
| United Kingdom | 4 years from end of accounting period (extendable to 6/20 years for careless/deliberate errors) | 2028 |
