Tax & Legal

Tax & Legal

OECD releases Pillar Two 15% minimum effective tax rate Model Rules

The OECD released the long-awaited Pillar Two 15% minimum effective tax rate Model Rules on 20 December, just days before the expected release of a draft EU Directive on minimum taxes. As set out in the 8 October 2021 Statement by the OECD/G20 Inclusive Framework (IF), these Model Rules are the first of three expected sets of guidance: the Model Rules; an explanatory Commentary, expected in January; and a more detailed Implementation Framework, expected in the middle of 2022 at the earliest.  Continue reading

Federal Constitutional Court: Inadmissible review of norm regarding the solidarity surcharge on corporate income tax credits

In a decision published on 26 November 2021, the Federal Constitutional Court (Bundesverfassungsgericht,) declared as inadmissible a referral by the Supreme Tax Court (Bundesfinanzhof) regarding Section 3 of the Solidarity Surcharge Act 1995 as amended on October 15, 2002 (SSA, 1995). Continue reading

Traffic Light Coalition Agreement

On November 24, the SPD, the Greens and FDP concluded their coalition talks. The party membership of the three parties have yet to approve the Coalition Agreement. Members of the Green party can vote on the Coalition Agreement and the proposals for personnel in the ten days following 24 November 2021. The SPD will hold an extraordinary federal party conference on December 4, 2021 to vote on the Coalition Agreement. The FDP plans to decide on the coalition agreement on December 5, 2021. Continue reading

Whistleblower Directive – transposition into German law

On 16 December 2019, the EU Directive (2019/1937) on the protection of persons who report breaches of Union law (‚Äúthe whistleblower directive‚ÄĚ) came into force. The aim of the directive is to better protect whistleblowers across the EU. EU member states have until 17 December 2021 to transpose the requirements into national law. Continue reading

German Desk Italy: The transfer of inventory existing in Italy as part of a transfer of going concern carried out abroad is an autonomous supply of goods for VAT purposes

In brief

With the reply to ruling no. 637, dated 30 September 2021, the Italian tax authorities provided clarifications on the correct treatment applicable for VAT and registration tax purposes to the transfer of inventory existing in Italy included in a wider transfer of going concern carried out abroad. Continue reading