Tax Advice

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.

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Com­pa­red to the draft ap­pro­ved by the Fe­deral Ca­bi­net, the ver­sion of the Act now pas­sed by the Ger­man Bun­des­tag has been ad­ap­ted to the gui­de­lines and an­noun­ce­ments that have since been is­sued at OECD le­vel. Spe­ci­fi­cally, the fol­lo­wing chan­ges have been made to the new Mi­ni­mum Tax Act com­pa­red to the draft law:

  • Ad­di­tion to Sec­tion 27 (1) Min­StG-E on the tre­at­ment of tax al­lo­wan­ces that were gran­ted in con­nec­tion with in­vest­ments and re­du­cing their ac­qui­si­tion or pro­duc­tion costs
  • Ad­di­tio­nal re­gu­la­ti­ons for de­ter­mi­ning the as­sess­ment ba­ses for mar­ket­able and trans­fe­ra­ble tax al­lo­wan­ces (Sec­tion 28 Min­StG-E)
  • Ad­di­tion of re­gu­la­ti­ons on the tre­at­ment of tax ad­van­ta­ges for par­ti­ci­pa­tion in cer­tain tax-trans­pa­rent en­ti­ties (Sec­tion 29 Min­StG-E)
  • Ad­di­tion to the con­side­ra­tion of re­co­gnized na­tio­nal supp­le­men­tary ta­xes when de­ter­mi­ning the tax in­crease amount (sec­tion 54 (2) Min­StG-E)
  • Mo­di­fi­ca­ti­ons to the eli­gi­ble em­ployees un­der Sec­tion 59 Min­StG-E and the eli­gi­ble tan­gi­ble as­sets un­der Sec­tion 60 Min­stG-E
  • Ren­aming of the pre­vious sim­pli­fi­ca­tion for im­ma­te­rial busi­ness units to safe har­bor for sim­pli­fied cal­cu­la­ti­ons and ad­apta­tion of the re­gu­la­ti­ons to the ad­mi­nis­tra­tive gui­de­lines for the ad­mi­nis­tra­tion of the GloBE mo­del re­gu­la­ti­ons in Sec­tions 79, 80 Min­StG-E
  • Amend­ment of the safe har­bour rule for re­co­gnized na­tio­nal supp­le­men­tary tax (sec­tion 81 Min­stG-E)
  • In­ser­tion of a pro­vi­sion on the se­con­dary supp­le­men­tary tax safe har­bor amount in sec­tion 89 Min­StG-E
  • Supp­le­men­tary re­gu­la­tion on cur­rency con­ver­si­ons in the ta­xa­tion pro­ce­dure (Sec­tion 97 Min­StG-E)
  • Aut­ho­riza­tion of the Fe­deral Mi­nis­try of Fi­nance, with the ap­pro­val of the Fe­deral Coun­cil, to is­sue re­gu­la­ti­ons on the scope, more de­tai­led struc­ture and ex­change of in­for­ma­tion re­gar­ding the mi­ni­mum tax re­port by sta­tutory or­der (Sec­tion 99 (3) Min­StG-E)
  • Ope­ning clause for fur­ther safe har­bor re­gu­la­ti­ons that can be is­sued by or­di­nance by the Fe­deral Mi­nis­try of Fi­nance with the ap­pro­val of the Fe­deral Go­vern­ment of Ger­many (Sec­tion 99 (4) Min­StG-E)

Note: In or­der to en­ter into force, the draft law must still pass the Ger­man le­gis­la­tive pro­ce­dure in full.

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