The German Government published draft guidance Wednesday aimed at halting a trend of businesses relocating their offices within the country to pay a lower rate of tax.
The Federal Ministry of Finance announced amendments to tax regulations that would increase the minimum municipal trade tax multiplier from 200% to 280%, intended to counteract “the practice of companies relocating their registered offices to other jurisdictions.”
German companies face a federal and municipal tax that combine to create their corporate tax rate, alongside a minor solidarity surtax.
The trade tax, which is enforced by German municipalities, is calculated as a base ...
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