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Tax Advice

Glo­bal Mi­ni­mum Tax: A chal­lenge for large groups

From fi­nan­cial year 2024 on­wards, large groups must ex­amine the ex­tent to which an ad­di­tio­nal tax (so-cal­led top-up tax) is payable due to the re­qui­re­ments of the glo­bal mi­ni­mum tax. Even if all group en­ti­ties are ba­sed in coun­tries with a no­mi­nal cor­po­rate tax rate well above the mi­ni­mum tax rate of 15 %, the glo­bal mi­ni­mum tax may ne­vert­he­less lead to an ad­di­tio­nal tax or at least ad­mi­nis­tra­tive bur­den. Howe­ver, tem­porary safe har­bour ru­les may re­duce the ad­mi­nis­tra­tive bur­den in many ca­ses.  ...read more

Trans­fer pri­cing: Si­gni­fi­cant tigh­te­ning for fi­nan­cial tran­sac­tions and ser­vices

On 22 March 2024, the Ger­man Fe­deral Coun­cil ap­pro­ved the Me­dia­tion Com­mit­tee's com­pro­mise pro­po­sal on the Growth Op­por­tu­nities Act. As a re­pla­ce­ment for the ori­gi­nally in Ger­many plan­ned in­te­rest rate cap, which was re­mo­ved from the draft bill, new re­gu­la­ti­ons for cross-bor­der fi­nan­cial tran­sac­tions and ser­vices will the­re­fore be in­tro­du­ced from the 2024 tax pe­riod (Sec­tion 1 (3d) and (3e) For­eign Tran­sac­tions Tax Act (AStG)).  ...read more

De­fer­ral of exit tax - in vio­la­tion of EU law un­der old and cur­rent le­gis­la­tion?

For re­lo­ca­ti­ons ab­road be­fore 01 Ja­nu­ary 2022, a dis­tinc­tion was made in terms of the de­fer­ral of the re­sul­ting exit tax bet­ween EU/EEA coun­tries and third coun­tries as the state of re­lo­ca­tion. The re­gu­la­tion ap­plica­ble to re­lo­ca­ti­ons since 01 Ja­nu­ary 2022 al­ways pro­vi­des for a de­fer­ral in the form of pay­ment spread over se­ven years, pro­vi­ded that the tax­payer does not claim that he will re­turn to Ger­many wi­thin se­ven years. But is that in line with EU law?  ...read more

Trans­fer pri­cing: Sim­pli­fied pri­cing for rou­tine sa­les ac­tivi­ties from 2024?

With the pu­bli­ca­tion of a con­sul­ta­tion pa­per on Amount B as one of the com­pon­ents of Pil­lar I, the OECD in­tends to sim­plify and stan­dar­dize the trans­fer pri­cing ru­les for cer­tain core dis­tri­bu­tion ac­tivi­ties. The pro­po­sed ap­proach should also ap­ply to SMEs and be in­clu­ded in the OECD Trans­fer Pri­cing Gui­de­lines as early as the be­gin­ning of 2024.  ...read more

Bun­des­tag ad­opts Mi­ni­mum Tax Di­rec­tive Im­ple­men­ta­tion Act

On 10 No­vem­ber 2023, the Ger­man na­tio­nal par­lia­ment pas­sed the Act on the Im­ple­men­ta­tion of Coun­cil Di­rec­tive (EU) 2022/2523 to en­sure glo­bal mi­ni­mum ta­xa­tion and other ac­com­pany­ing mea­su­res (also known as the Mi­ni­mum Tax Di­rec­tive Im­ple­men­ta­tion Act) in the ver­sion re­com­men­ded by its Fi­nance Com­mit­tee on 8 No­vem­ber 2023.  ...read more