miércoles, 25 de enero de 2017

Germany enacts BEPS-related tax rules, other important provisions

The German Bundestag and Bundesrat (Federal Parliament and Federal Council) on December 2, 2016 and December 16, 2016, respectively, passed tax legislation that includes provisions related to the Organisation for Economic Co-operation and Development’s (OECD’s) Base Erosion and Profit Shifting (BEPS) project.
The new tax rules are not a surprise. The legislature has been discussing them for the past several months and made only minor amendments to the draft legislation.
The German Bundestag and Bundesrat (Federal Parliament and Federal Council) on December 2, 2016 and December 16, 2016, respectively, passed tax legislation that includes provisions related to the Organisation for Economic Co-operation and Development’s (OECD’s) Base Erosion and Profit Shifting
(BEPS) project. The legislation:

  • introduces country-by-country reporting (CbCR) and the ‘Master File/Local File’ concept 
  • treats special business expenses of a partner of a German partnership as nondeductible to the extent they reduce the tax base in another jurisdiction, thereby preventing a so-called ‘double dip’
  • introduces an additional exception to the German net operating loss (NOL) forfeiture rules, and
  • narrows the scope of finance and holding companies that are not eligible for the participation exemption on dividends and gains realized on corporate shares.

The new tax rules are not a surprise. The legislature has been discussing them for the past several months and made only minor amendments to the draft legislation. However, note that some of the tax measures discussed — such as those regarding land-rich entities — were not enacted.
Source & more info: PwC

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