Corporate Tax

The German Bundestag helps corporate earnings tax and avoidance measures

On Friday, the Bundestag approved draft laws to implement measures of the European Directive to avoid taxes and to change corporate tax rates.

The ATAD measures, in which Germany is already more than a year and a half behind schedule, include new rules to prevent hybrid mismatches, changes to the so-called exit tax regime and controlled foreign companies, as well as clarifications on tax and depreciation rules for transactions with related parties.

  • The changes in corporate taxation will allow companies classified as partnerships to be taxed as corporations instead, which in some cases could result in a significant decrease in their tax rates – a change …

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