On Sept. 4, the German Finance Ministry published a document announcing the country’s plans to implement the 15 percent global minimum corporate tax on German companies or companies subject to tax in Germany, which was agreed upon by jurisdictions through the Organization for Economic Cooperation and Development (OECD). However, Germany is moving forward with implementation rather than waiting for a formal agreement from the European Union (EU), yet the country will still plan to seek consensus from the EU.
The proposed global minimum corporate tax would be applied to companies whose annual revenue is more than $743 million and require that they pay 15 percent of taxes in each country where they have operations. Nearly 140 jurisdictions agreed to the implementation of the tax in October 2021 after negotiations facilitated by the OECD.
For more information on how the global minimum corporate tax could impact your business, contact your Windham Brannon advisor or reach out to Brandi Samuel.
