An overview by Flick Gocke Schaumburg, Taxand Germany
On 1 July 2023, the Federal Ministry of Finance (BMF) presented a draft bill called the Minimum Taxation Directive Implementation Act (RefE-MinBestRL-UmsG), aiming to implement the global minimum taxation (“Pillar Two”) through a new minimum tax law (MinStG) and several other noteworthy changes, expected to be applicable from 1 January 2024.
The key points of the bill include:
- Lowering the threshold for low-taxed passive income subject to additional taxation from the current 25% to 15%.
- Abolition of trade tax liability on add-back amounts.
- Abolition of the license barrier that restricts the deduction of operating expenses.
- Instituting a requirement that notifications and declarations must be transmitted electronically.
Read the full analysis here.
<< Back to news