German Länder Tell Berlin: Pause the 15% Minimum Tax, Washington Isn’t Playing Ball
The Big Picture: Germany helped architect the OECD’s 15% global minimum tax, but some of its own states now want to slam the brakes. Three Länder will ask their peers to back a call for the federal government to suspend the rule until the U.S. adopts a comparable measure, Law360 revealed on Thursday. These debates around international tax reforms echo dynamics in other parts of the world, interested readers can also explore comprehensive details on evolving fiscal policies in Nigerian Tax Laws 2025 - Comprehensive Tax Reform Legislation.
The Details: The trio,Bavaria, Hesse, and Saxony,argue that enforcing the levy while the U.S. remains on the sidelines could handicap German multinationals. They plan to submit a motion at the Bundesrat urging Berlin to “avoid unilateral competitive disadvantages” and explore a temporary opt-out. The push comes just three months before Germany’s own Income Inclusion Rule is due to kick in.
Why It Matters / What They’re Saying: Tax pros say the rebellion underscores mounting frustration over the patchwork roll-out of Pillar Two. One state official told Law360 the tax “only works if all the big players show up.” Multinationals are watching closely; a pause could delay tens of billions in top-up taxes and spark similar moves across Europe. For those looking to build a solid foundation in tax principles, an Introduction To Nigerian Tax Laws provides helpful insights into how fiscal reforms are structured.
Around the Tax World
- UK windfall levy under fire. Business leaders want the Chancellor to scrap the Energy Profits Levy on North Sea producers, warning it has “stifled investment” and cost jobs, according to CityAM.
- Ford trims 500 South African jobs. The automaker blamed weak European demand and recent UK tax tweaks on double-cab pickups for the cuts ( Business Insider Africa ).
- Danish tax authority loses £1.4 bn fraud fight. A UK court dismissed SKAT’s claim over alleged dividend-tax refund scams, International Tax Review reported ( ITR ).
- Transfer-pricing pros preach plain English. In-house TP leads at ITR’s forum said success hinges on “tight internal relations” and jargon-free storytelling ( ITR ).
By the Numbers
Tax Stat of the Day: £1.4 billion , the value of dividend-tax refunds Denmark’s SKAT unsuccessfully chased in UK courts (ITR).
Looking Ahead
All eyes turn to the Bundesrat meeting later this month. If the Länder motion gains traction, Germany could become the first OECD architect to hit “pause” on Pillar Two, reshuffling the global minimum-tax timetable.
Prepared by MyTax - mytax.com.ng