Germany: Regulation to implement anti-tax haven legislation

Act to Combat Tax Avoidance and Unfair Tax Competition (StAbwV)

Act to Combat Tax Avoidance and Unfair Tax Competition (StAbwV)

The regulation to apply the Act to Combat Tax Avoidance and Unfair Tax Competition (Steueroasenabwehrverordnung—StAbwV) was promulgated in the German Federal Law Gazette (Bundesgesetzblatt) in December 2021 and has thus entered into force in principle.

The Act to Combat Tax Avoidance and Unfair Tax Competition (Act to Combat Tax Havens—StAbwG) of 25 June 2021 provides administrative and legislative measures that apply in relation to those states and territories that are non-cooperative tax jurisdictions. Tax jurisdictions are non-cooperative pursuant to the StAbwG if they are on the EU list of non-cooperative countries and territories for tax purposes and specified in the StAbwV. The StAbwV currently lists the following nine non-cooperative tax jurisdictions: American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, U.S. Virgin Islands, and Vanuatu.

In addition, the date (24 December 2021) is specified on which the itemized non-cooperative tax jurisdictions were included in the StAbwV. This is relevant for the applicability of defensive measures, because the StAbwG provides for a "phased model" for the timing of certain defensive measures for new countries included. The following applies for the nine above-mentioned tax jurisdictions with the entry into force and inclusion in the StAbwV in the course of 2021:

  • From 2022 (the first year after inclusion), tighter CFC rules and withholding tax measures (Sections 9, 10 StAbwG) must be applied.
  • From 2024 (the third year after inclusion), measures concerning dividends and sales of ownership interests (Section 11 StAbwG) must be applied in addition.
  • From 2025 (the fourth year after inclusion), denial of tax deduction of expenses (Section 8 StAbwG) must be applied in addition.

Read a January/February 2022 report [PDF 270 KB] prepared by the KPMG member firm in Germany

 

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