Germany: Draft legislation to expand MLI to 62 additional treaties; other tax developments
Proposed expansion to treaties with significant trading partners and members of the G20
The Ministry of Finance (MoF) published draft legislation to amend the MLI Implementation Amendment Act of November 24, 2016, to expand the list of “covered tax treaties” to include 62 additional income tax treaties (including treaties with significant trading partners and members of the G20, such as the United States, China, Poland, Belgium, Portugal, South Korea, India, Canada, Argentina, and Indonesia).
The MLI selection decisions made by Germany for these 62 treaties are largely the same as those made for previously designated covered tax treaties.
In order for modifications to the 62 treaties to become effective, amendments to the MLI Application Act of June 19, 2024 (taking into account Germany’s selection decisions and those of the respective other contracting jurisdiction for the covered tax treaties) are also required, and Germany must notify the OECD that the domestic procedures for the effectiveness of the MLI have been completed concerning the respective tax treaty.
Other recent tax developments in Germany include:
- Government draft bill to provide tax incentives for employees of retirement age
- Federal Tax Court (II B 23/25): Real estate transfer tax in so-called signing-closing cases
- Federal Tax Court (II R 26/23): Real estate transfer tax when 95% threshold is exceeded again and application of correction provision when share deal is subsequently cancelled
- Lower Tax Court of Hesse (3 K 778/21): Taxation of contribution gain II may violate merger directive
Read a November 2025 report prepared by the KPMG member firm in Germany