The German Federal Council has recently approved to align its tax framework with international standards. The Amendment Act to the BEPS-MLI Implementation Act of 22 November 2020, extends the scope of application significantly, increasing the number of Double Taxation Agreements covered from 14 to 76. This will allow Germany to update multiple treaties at once, rather than renegotiating them individually, therefore tackling tax avoidance.
Once in place, the changes should make it easier for countries to resolve cross-border tax disputes, and could introduce clearer processes and, in some cases, arbitration, particularly with key partners like Canada and New Zealand.
Tax experts from German Taxand member firm Flick Gocke Schaumburg provide a comprehensive overview of the impact on German companies and their trading partners.
Read the full article here.