On March 24, 2021, the federal government passed a draft law to implement the Anti-Tax Avoidance Directive (ATAD Implementation Act or ATADUmsG).
The draft law also provides for the significant tightening of exit taxation, which has been discussed for a long time. In addition, the federal government is sticking to the low tax rate of 25 % on the grounds that the work at the OECD level on the introduction of a global minimum taxation (BLOBE) has not yet been completed.
In particular, the draft law contains the following measures:
- Adjustment of the deferral regulation for exit taxation
- Changes for additional taxation (shareholder-related consideration)
- Linkage of values in tax entanglement
With regard to the exit taxation of natural persons according to Section 6 of the Foreign Tax Act (AStG), the draft law provides for standardization of the deferral regulations and changes to the so-called returnees regulation.
The control criterion in particular is adjusted through adjustments to the additional taxation. Instead of focusing on national control, a shareholder-related consideration of the control criterion will be carried out in the future. In addition, in the case of multi-level company structures, there is no longer any loss consolidation at the level of the highest foreign company within the framework of additional taxation.
In particular, the changes relating to exit taxation and add-back taxation should only apply from January 1, 2022. You can still trade with it now.
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