Corporate Taxation/International Tax Law
1. “BEPS Project” of OECD/G20 states
On October 5, 2015, OECD and G20 states published an Action Plan comprising a raft of measures to combat both harmful tax competition between states, and aggressive tax planning by internationally active enterprises (called the “BEPS Project” – Base Erosion and Profit Shifting). To this end, the parties agreed 15 internationally coordinated actions designed to prevent and counter base erosion and profit shifting. They range from new minimum standards for harmonized country-by-country reporting by enterprises, all the way to common guidelines based on proven procedures such as mutual agreement procedures for cross-border dispute resolution.
The VDA has compiled an assessment of the measures relevant to the automotive industry (“VDA’s Position on BEPS”, see download) and issued this press release concerning the publication of the OECD reports:
“The German automotive companies are active around the globe. In 2014 alone, the German manufacturers produced around 9.3 million vehicles abroad, and 5.6 million in Germany. For this reason they need an internationally competitive framework for tax law. The risk of double taxation in particular must be avoided.
The OECD should ensure a coordinated, standardized procedure for all states at international level for all of its measures. This is the only way to create suitable regulatory framework conditions for fair taxation systems and avoid base erosion in the participating states. German corporate tax law already goes further than the international standards. A unilateral tightening of standards, for example through extensive new corporate reporting obligations, will be detrimental both to German enterprises and to German tax revenues.”
2. Comparison of motor vehicle taxation in Europe
You will find a summary of motor vehicle taxation in Europe here: