Germany’s Implementation of EU Defensive Tax Measures against Non-Cooperative Jurisdictions

Abstract

On 25 November 2019, the Council of the European Union published new guidance on defensive tax measures against non-cooperative jurisdictions listed on the EU tax haven blacklist. The legislative measures include: (i) non-deductibility of costs incurred in a listed jurisdiction, (ii) controlled foreign company rules, (iii) withholding tax measures and (iv) a participation exemption limitation on profit distributions. This article critically evaluates the implementation of these measures in Germany and provides a pan-European comparison.