German Anti-Treaty-Shopping Rules

The pro­vi­si­ons of sec­tion 50d(3) of the Ger­man In­come Tax Act (EStG) on pre­ven­ting the abuse of treaty be­ne­fits (anti-treaty-shop­ping ru­les) are go­ing to be re­vi­sed. To achieve this, the draft Wi­th­hol­ding Tax Re­lief Mo­der­ni­sa­tion Act (Ab­zS­tEntl­ModG) ad­op­ted by the Ger­man go­vern­ment on 20 Ja­nu­ary 2021 con­ta­ins a pro­po­sal that re­sponds to the re­qui­re­ments of EU law.