Law to ensure global minimum taxation promulgated

The act implementing Council Directive (EU) 2022/2523 to ensure a global minimum level of taxation for groups of companies (Minimum Tax Act) and other accompanying measures was promulgated in the Federal Law Gazette on 27 December 2023 and came into force on 28 December 2023.

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

In line with international accounting standards, a mandatory exemption from the recognition of deferred taxes resulting from the application of the German Minimum Tax Act or corresponding foreign tax laws is added. Furthermore, to ensure a minimum level of transparency and information for users of the financial statements, a new disclosure is required for the notes to the financial statements and the notes to the consolidated financial statements in section 285 no. 30a HGB and section 314 no. 22a HGB. We reported on this in more detail in Express Accounting News 36/2023).

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 affects all companies with a financial year with the same calendar year. The exemption from the recognition and measurement of deferred taxes must be applied for the first time to financial statements for a financial year ending after 28 December 2023.

You can find the legal text here.