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Germany: Annual Tax Act 2024 would postpone new rules on withholding tax payment and reporting

Proposal would postpone the rules until 2027 (originally scheduled for 2025)

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November 1, 2024

The Annual Tax Act 2024, which was passed by lower house of Parliament (Bundestag) on October 18, 2024 (read TaxNewsFlash), would postpone the new rules on withholding tax payment and reporting (MiKaDiv), originally scheduled for 2025, until 2027.

The postponement is intended to facilitate joint implementation of MiKaDiv with the EU FASTER directive, which will apply from January 1, 2030. Application of the new MiKaDiv rules (coordinated with the reporting standards under the FASTER directive) to dividend payments received after December 31, 2026, would result in implementation of the FASTER rules in Germany three years before required under the directive.

The Annual Tax Act 2024 with the amendments passed by the Bundestag still requires the approval of the upper house of Parliament (Bundesrat), which could occur on November 22, 2024.

Read a November 2024 report prepared by the KPMG member firm in Germany


For more information, contact a KPMG tax professional in Germany:

Christian Fischler | cfischler@kpmg.com

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