Several factors contributed to the FFMDB’s decision to delay implementation of the reform, including:
- Large Enterprises are not prepared enough: About 25% of large enterprises say they are not ready for 2024. This situation is a concern for the success of the transition.
- Late PDP registration: The registration of PDPs was delayed from the scheduled date. This has led to logistical and administrative challenges.
- Complexity of the pilot phase: The pilot phase was more complicated than anticipated. With 1,300 companies applying, the tests took longer.
- Problems understanding e-reporting: Many companies have a poor understanding of e-reporting. This lack of clarity slows down the implementation of the reform.
- Initial summer calendar: Stakeholders are not comfortable with a launch in the middle of summer. This period does not allow for a smooth transition.
- PPF not ready: The PPF will not be operational until fall 2024. Its absence in July made implementation impossible.
There are still new deadlines being considered. Indeed, PBIF is currently considering a new timetable for the implementation of the reform, taking into account the development of the FPP in 2024. The time frames envisaged are:
- 2025 – An expanded pilot phase of one year will be implemented, allowing for more in-depth testing.
- 2026 – The roll-out of the deferred tax reform will be in two or three phases, with the possibility that it will spill over into 2027. The ideal dates for these phases would be March and October 2026.
Thus, the authorities will likely announce the new timetable for implementing the deferred tax reform as early as October. As a result, this announcement will provide companies with a clearer roadmap, allowing them to better anticipate the necessary adjustments and smoothly adapt their transition.
However, it is important to emphasize that, in addition to the revised timeline, further legislative work will be required to clarify some key elements. For instance, to facilitate a seamless transition, the registration of PDPs will be permitted without requiring interoperability tests with the PPF. Otherwise, companies will struggle to anticipate their choice of PDP, which would add complexity to the process. Therefore, this legislative work is scheduled for the first quarter of 2024. In this way, policymakers aim to ensure a smoother and more effective implementation of the tax reform.
In conclusion, the DGIP’s decision to postpone the tax reform is backed by well-founded reasons, all aimed at ensuring a structured, efficient, and successful transition for all stakeholders. By setting new timelines, authorities provide a realistic and pragmatic path toward the seamless implementation of this significant reform.
