Global minimum tax decision: Financial expert assesses Germany's implementation

Global minimum tax decision: Financial expert assesses Germany's implementation

According to a report by www.hl-live.de, the members of the German Bundestag have decided to implement the global minimum tax for Germany. Bundestag member Tim Klüssendorf (SPD) spoke in the Bundestag about global tax justice and supported the resolution.

The global minimum tax for companies will be introduced from 2024 and will be at least 15%. This is an important step to prevent tax avoidance by shifting profits to tax havens. In addition, competition between states with lower tax rates should be curbed. The introduction of this minimum tax is expected to lead to additional tax revenue of around one billion euros for Germany.

The minimum tax applies to internationally and nationally active corporate groups with a turnover of more than 750 million euros. The subsequent taxation of corporate profits that are not taxed or are taxed at low rates ensures a minimum taxation of 15 percent. In addition, the minimum taxation will be implemented in accordance with the EU Minimum Taxation Directive, including internationally agreed simplification regulations.

As a financial expert, you can use this information to analyze that the global minimum corporate tax will have a significant impact on the taxation of large corporations. The additional revenue of around one billion euros for Germany could have an impact on the national deficit as well as on government investments and social programs. In addition, aggressive tax planning models are becoming less attractive, which could lead to a certain fairness in corporate taxation.

The introduction of this minimum tax could also have an impact on international location competition as it sets a lower limit for tax rates. In the future, companies will have to pay more attention to the countries in which they generate their profits and how they tax them. In the long term, this could lead to a harmonization of tax systems and influence international tax competition.