Annual revenue from 2026
Minimum tax should bring hundreds of millions of euros
7/11/2023 12:53 p.m
The German state can probably rely on a new source of income from 2026. According to a Treasury Department bill, the minimum tax for large corporations could bring in big bucks annually from that point forward. That would allow more leeway in the household.
The planned minimum taxation for large companies should bring in several hundred million euros annually from 2026 onwards. This emerges from a draft law by Finance Minister Christian Lindner. The Internet portal Pioneer had previously reported. The minimum tax rate is one of two parts of a global corporate tax reform that 138 countries have signed up to. This is to prevent large corporations from shifting their profits to tax havens.
In the future, all international companies with annual sales of more than 750 million euros will have to pay at least 15 percent tax. It doesn’t matter where the profits come from. The state in which the parent company is based has the right to post-tax profits from a tax haven at a rate of 10 percent. This is intended to ensure that these profits are also ultimately subject to effective taxation of 15 percent. In the first year of introduction, 2025, the Ministry of Finance expects costs of around 50 million euros. In 2026, around 910 million will flow into the state coffers, in 2027 around 535 million and in 2028 around 285 million.
Christian Lindner hopes that this will give him more leeway in the household to avoid other burdens. “We don’t want to keep increasing taxes for the economy and people,” said the FDP leader on Twitter in March. “In order for us to remain financially solid, large international companies must also make their fair contribution. We will prevent tax dumping in the future.”