GERMAN FOREIGN TRANSACTIONS TAX ACT [AUßENSTEUERGESETZ]
Comprehensive reform of German CFC rules
On 21 May 2021, the German Bundestag (Parliament) adopted the Act Implementing the Anti-Tax Avoidance Directive after long discussions between the Federal Ministry of Finance and the Federal Ministry for Economic Affairs and Energy. In its meeting on 07 May 2021, the German Bundesrat (Federal Council) submitted its statement on this matter which included individual topics concerning controlled foreign company (CFC) rules. The Federal Council adopted the Act in its meeting on 25 June 2021, so that the legislative procedure will be concluded during this legislative period.