Tax havens enjoy great popularity in international corporate tax law, because they enable the clever transfer of profits to Germany or abroad. At the same time, the German treasury tax subrat is lost if income is “shifted” into other tax regimes or distributed among several states. With the tax haven defense law, the designation of which is quite clear, the legislature makes certain designs more difficult. The core of the law is a “black list” of currently (2023) 12 states, which are listed in the corresponding legal ordinance.
1st Basis of the Tax Havens Defense Act: the tax haven
As the name already reveals, the legislature wants to prevent (“defend”) unjustified or unfair tax arrangements in which certain states are involved with the tax haven defense law. According to § 2 StAbwG, a tax haven is a state that does not have sufficient willingness to cooperate in tax matters. This condition applies if one of the following situations is fulfilled:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.