Germany: Proposed investment tax incentives, Pillar Two changes, intra-group financing transfer pricing guidance, MLI law enacted
Recent tax developments in Germany
The Federal Ministry of Finance (BMF) published the government draft for an Act on the Further Development of Tax Law and the Adjustment of the Income Tax Rate.
The draft bill, which is intended to implement the first measures from the federal government's growth initiative as well as plans from the coalition agreement of the governing parties, includes measures related to:
- Investment incentives, including collective and declining balance depreciation and expansion of research allowance
- Obligation to report domestic tax arrangements
The publication of the ministerial draft bill will be followed by the parliamentary process. The first step will be the statement by the upper house of Parliament (Bundesrat) on the government draft. Significant changes may still arise in the further course of the legislative process.
Read an August 2024 report prepared by the KPMG member firm in Germany
Other recent tax developments in Germany include:
- The "Law on the Application of the Multilateral Convention of November 24, 2016, and Further Measures" was promulgated in the federal gazette on June 21, 2024. Read TaxNewsFlash
- The BMF published a discussion draft for a law to amend the Minimum Tax Act to implement the December 2023 OECD administrative guidelines, with a focus on the country-by-country (CbC) reporting safe harbor.
- The BMF on August 14, 2024, issued draft guidance regarding the new transfer pricing rules for intra-group financing. Read TaxNewsFlash