News in Brief, May 2023

DOMESTIC NEWS

• An EU-wide framework agreement has been published, allowing employees to work for a foreign employer from home for up to 49.9% of their working hours without changing their social security jurisdiction. Individual EU/EEA member states, Switzerland, and the UK have time to decide whether to join. The agreement will enter into force on 1 July 2023. States that sign must prepare administratively for its implementation.
   

FOREIGN NEWS

• The EU Council approved the introduction of a Carbon Border Adjustment Mechanism (CBAM) as part of its Fit for 55 measure. Under this mechanism, importers of goods covered by the EU's emissions trading scheme will have to pay the difference between the price of carbon emissions in the country of production and the price of carbon allowances in the EU. A measure on the review of aviation emission allowances was also passed, as well as the introduction of Emissions Trading System II, which will charge for emissions from road transport fuels and emissions from the use of buildings starting from 2027. The EU will publish the regulations in its Official Journal.
• The European Commission adopted an implementing regulation on the reporting obligation of digital platform operators (DAC 7). The regulation sets out the criteria under which information exchanged under an agreement between the tax authorities of EU member states and non-EU countries shall be regarded as equivalent to information compulsorily reported in the EU. If reportable information matches subsequently exchanged information, platform operators from these countries would not be subject to EU reporting obligation.