DAC 9: Approval of the directive on the content and exchange of information on the top-up tax information return

One of the key components of the new global minimum top-up tax for large groups (top-up tax) is the related GloBE information return (GIR) which we reported on in our recent publication dated April 4, 2025 on the recently approved regulations on the tax in Spain.

DAC9 (Council Directive (EU) 2025/872 of 14 April 2025 amending Directive 2011/16/EU) was published in the Official Journal on May 6, 2025. The directive implements the content of the GIR and the system for exchanging its content among the authorities of EU member states. The directive must be transposed by December 31, 2025.

The new DAC9 implements two elements related to that return:

1. It sets out the content of the return, which will have to guide the returns approved by the various EU member states. The return contains two sections:

   1. General section for general information on the group.
   2. Jurisdictional section for detailed information on the application of safe harbors and exclusions and on the calculations of the tax in each jurisdiction.

   This content is consistent with, and practically identical, to the GIR proposed by the OECD and to the return set out in the Spanish top-up tax regulations.

2. There are also rules on the filing system for the return and on the exchange of information among the member states’ authorities.

   Under these rules the competent authority of the member state that has received the return filed by the ultimate parent entity or by a designated entity will have to exchange the following information with the other member states concerned:

   1. With the member states where the ultimate parent entity is located or where there are constituent entities applying the income inclusion rule (IIR) or the undertaxed profits rule (UTPR) : the general section of the return.
   2. With the member states where there are constituent entities or joint ventures that only apply a domestic minimum top-up tax (DMTT): the general section of the return, with the exception of the information in the high-level summary (section 1.4).
   3. Lastly, the authorities concerned will have to share the jurisdictional sections relating to each member state that has taxing rights for any of the top-up tax mechanisms (in other words, the jurisdictional section will have to be shared with the member state where any constituent entity subject to a top-up tax mechanism is located).

The information will have to be exchanged within three months following the end of the filing period for the return. The first tax period, however, (that is, the first period to commence after December 31, 2023), will be a six-month period.