iSP Global Tax Info February 9th, 2018
On February 8th, 2018 the negotiators of the CDU, CSU and SPD have agreed on a coalition agreement, which still has to be confirmed by the party congress and the SPD membership survey.
In the following, we would like to give you an overview of the main contents of the planned tax measures in the area of corporate taxes:
1. International tax policy
- Together with France, Germany supports the introduction of a common European tax base and minimum corporate tax rates, in particular in response to international changes and challenges, not least in the US.
- Maintaining the current goal of introducing a financial transaction tax in a European context.
- All assets obtained from a (tax) crime and all illegal profits should be collected consistently.
- The collection and reimbursement procedure for import VAT should be optimized in cooperation with the 16 German federal states.
- The role of the German Federal Central Tax Office (BZSt) will be strengthened with appropriate equipment. The Authority should become a central contact point for tax-related questions and binding information for non-residents.
- The withholding tax on interest income is abolished with the establishment of the automatic exchange of information; Circumstances are prevented.
2. Tax Fairness
- Efforts to ensure fair taxation for large corporations, and in particular the Internet companies, continue to be based on international consensus. The broadest possible implementation of OECD BEPS commitments and recommendations around the world should create a fair tax competitive environment for cross-border business activities.
- The obligations under the EU Anti-Tax Avoidance Directive (ATAD) are implemented, the German CFC Rules are updated in a timely manner, hybrid regulations are supplemented and the interest barrier is adjusted.
- In order to combat VAT fraud in relation to the sale of goods on the Internet, legal provisions should be implemented to make operators of electronic marketplaces who do not prevent the sale by dishonest entrepreneurs via their marketplace liable for the lost sales taxes. The operators are obliged to provide information about all active traders on their platforms.