Germany: Law implementing Pillar Two global minimum tax passed by lower house of Parliament

The law must pass the Bundesrat and be promulgated to become effective.

Passed by lower house of Parliament

The lower house of the German Parliament (Bundestag) on 10 November 2023 passed the law to implement Council Directive (EU) 2022/2523 to ensure global minimum taxation (Pillar Two) and other accompanying measures as recommended in the resolution (BT-Drs. 20/9190 (new)).

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 HGB initially concern a mandatory exemption from recognizing 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 become effective.
    • 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 pass the upper house of the German parliament (Bundesrat) and be promulgated to become effective.

Read a November 2023 report prepared by the KPMG member firm in Germany



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.