The OECD has published important documents on global minimums. For German companies, the temporary safe-harbour regulations are particularly important. We explain these regulations and what special attention should be paid to them.
1. implementation of the global minimum tax
The OECD guidelines for the introduction of a global minimum taxation of 15% for multinational corporate groups with revenues of at least EUR 750 million have now also been implemented in Germany. The OECD published further important documents on this subject through the Inclusive Framework. The Inclusive Framework contains two public consultation papers on “GloBE Information Return” and “Tax Certainty”. The GloBE Information Return refers to the minimum tax statement that companies must submit in a uniform manner. Tax Certainty, on the other hand, concerns the dispute settlement between the participating tax administrations. However, what is particularly important for companies at the moment is the relief in connection with the global minimum tax, so-called safe-harbour regulations.
2nd Safe Harbour Regulation
2.1. Definition
The safe-harbour scheme is a relief scheme for companies in connection with the global minimum tax. It is intended to make it easier for companies to enter the new global tax regime. This should be done by applying three tests. This results in the company being excluded from the obligation to declare for a transitional period of three years. The safe-harbour regulation includes temporary and permanent simplifications. In Germany, the safe-harbour regulation is in §§ 78 ff. MinStG regulated.
2.2. Safe-harbour control design
The safe harbour control includes three tests. These aim to reduce the expenses for corporations in the early days of the global minimum tax. If the group fulfils one of the three tests for a territory in which it operates in the form of a company or establishment, it does not have to carry out a complex calculation for the effective tax rate. As part of the complex calculation, it would have to compare the adjusted covered taxes with the GloBE income. If, on the other hand, the safe-harbour scheme is applicable, the top-up tax of the relevant territory is assumed to be zero EUR. Nevertheless, the Group is fully subject to the regulations of the global minimum tax and thus also to the declaration obligations.
If the group does not make use of any of the temporary safe-harbour schemes in one year, the safe-harbour schemes cannot be used for the following transitional years. Therefore, the Group must then also carry out the full calculation for this country.
2.3. Three tests
The three tests are the “de minimis test”, the “Smiplified ETR test” and the “routine profit test”.
The de minimis test is met if – based on data from the country-by-country report – cumulative
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.