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On 10 November 2023, the Bundestag passed the law to implement Council Directive (EU) 2022/2523 to ensure global minimum taxation and other accompanying measures as recommended in the resolution (BT-Drs. 20/9190 (new)).

In addition to adjustments to income and foreign tax law in particular, amendments to the German Commercial Code (HGB) and Introductory Act to the German Commercial Code (EGHGB) are also planned.

In line with international accounting standards, the amendments to the German Commercial Code initially concern a mandatory exemption from recognising deferred taxes resulting from the application of the Minimum Tax Act or corresponding foreign minimum tax laws.

In addition, mandatory disclosures are provided for in the notes to the financial statements and the notes to the consolidated financial statements to ensure a minimum level of transparency and information for users of the financial statements. The disclosures relate to the actual tax expense or tax income resulting from the Minimum Tax Act or corresponding foreign minimum tax laws as well as explanations of the expected effects from the application of such minimum tax laws that have not yet entered into force.

The disclosures in the notes must be made for the first time in annual and consolidated financial statements whose financial year ends after 30 December 2023 and therefore affect all companies with a financial year with the same calendar date.

The law must first pass the Bundesrat and be promulgated.

You can find the law in the version of the recommended resolution here.

KPMG Express Accounting News

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