German Lower House OKs Bill Targeting Companies Using Tax Havens

June 10, 2021, 8:52 PM

The lower house of the German Parliament on Thursday approved legislation that would crack down on cross-border tax avoidance linked to countries on the European Union’s list of tax havens.

The draft law would tighten controlled foreign corporation rules, change withholding tax rates for interest payments made to individuals residing in tax havens, and roll back tax exemptions for profit distributions and sales of shares. Business expenses related to tax havens would no longer be tax deductible. The changes would take effect July 1, 2021.

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