Germany Publishes Draft Global Minimum Tax Legislation


  1. General
  2. Application of the Draft Law
  3. Safe Harbours
  4. Domestic Minimum Tax/QDMTT
  5. Compliance
  6. GloBE Elections Included/Excluded in the Draft German Law


On March 20, 2023, the German Federal Ministry of Finance published a consultation, including a draft law (the Minimum Taxation Directive Implementation Act), to implement the EU Global Minimum Tax Directive. The consultation is open for comments until April 21, 2023.

The draft legislation is very comprehensive and, as expected, covers all relevant aspects of the EU Global Minimum Tax Directive.

In particular, it provides for an Income Inclusion Rule (IIR) for financial years beginning after December 30, 2023 and the Under-Taxed Payments Rule (UTPR) for financial years beginning after December 30, 2024.

The draft legislation also includes a Qualifying Domestic Minimum Top-Up Tax (for financial years beginning after December 30, 2023) which reflects the latest design guidance in the OECD Administrative Guidance.

In addition, safe harbours, as reflected in the OECD Safe Harbour Guidance are also reflected in the draft legislation.

The structure of the legislation is:

Part 1: General Provisions/Definitions

Part 2: IIR/UTPR

Part 3: Determination of GloBE Income or Loss

Part 4: Determination of adjusted taxes

Part 5: Determination of the effective tax rate and the top-up tax

Part 6: Business restructuring and shareholding structures

Part 7: Special features of ultimate parent companies, distribution regimes and investment units

Part 8: Administration

Part 9: Special provisions for the transitional year, the transitional period and the initial phase

Part 10: Qualified domestic minimum top-up tax (QDMTT)

Part 11: Procedures and Penalties

This layout is pretty much identical to the EU Minimum Tax Directive, with the addition of two new chapters for the QDMTT and procedures and penalties.


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