Extended additional taxation pursuant to Section 13 of the Foreign Tax Act (AStG) according to the draft bill of the Minimum Tax Adjustment Act

The additional taxation and, in particular, the extended additional taxation under Section 13 of the Foreign Tax Act (AStG) are causing headaches for taxpayers and tax authorities alike. Too complicated, too impractical, too much effort! These concerns were taken into account in the legislative process as part of the draft Minimum Tax Adjustment Act. The draft bill considers retroactive amendment of Section 13 AStG, as the provision significantly exceeds the minimum standard under European law, is practically impossible to implement, and has legal consequences that go far beyond the actual intention, namely to prevent the deliberate transfer of profits abroad. Raphael Baumgartner outlines the changes under discussion and their potential impact in this article.