Global Minimum Tax - A challenge for medium-sized companies

With the Minimum Taxation Directive Implementation Act of 21 December 2023 (Federal Law Gazette I 2023, No. 397), the EU requirements, which in turn are based on the OECD‘s BEPS 2.0 project, were transposed into national law. As a result, also large medium-sized corporate groups are obliged to check from the 2024 financial year whether their profits are subject to an effective tax rate of at least 15 % worldwide. If this minimum tax burden is not achieved, a corresponding additional tax may have to be paid. The investigation and declaration effort resulting from the minimum tax requirements is an enormous challenge for the companies concerned. It is therefore even more important to check the requirements for temporary relief at an early stage.