Germany Approves and Updates its GloBE Law

Overview

On November 10, 2023, the Bundestag (Lower House) approved the German draft law to implement the EU Minimum Tax Directive.

It will need the approval of the Bundesrat (Upper House) and will then need to be signed by the President and published in the Official Gazette before the law is enacted and promulgated. 

There were a number of significant amendments to the original government draft law (approved by the Federal Cabinet on August 16, 2023) during the legislative process.

Most notably, the latest updated draft law implements numerous aspects of the Second Set of OECD Administrative Guidance (issued in July 2023). The original draft law already included most aspects of the First Set of OECD Administrative Guidance (see our OECD Administrative Guidance: Domestic Implementation Matrix).

Section 27  – New Provision for Qualified Refundable Tax Credits (QRTCs)