OECD Reform of Corporate Taxes Brings Germany Additional Revenue of EUR 2.4–3.4 Billion per Year

The introduction of the global minimum tax rate (pillar 2) would bring Germany tax revenue of between EUR 1.5 billion and EUR 1.7 billion. “Considering the latest agreements regarding the details of the global minimum tax rate, we expect the additional tax revenue to be at the lower end of our original estimates,” Neumeier says. In the spring of 2022, the researchers were still expecting the additional tax revenue to range between EUR 1.6 billion and EUR 6.2 billion. Their current estimates are significantly lower.

In addition to the global minimum tax rate, the researchers also examine the financial effects of the planned redistribution of taxation rights between countries (pillar 1) in their new study. These are associated with additional tax revenue for Germany to the tune of between EUR 0.85 billion and EUR 1.7 billion per year. The decisive factor here is whether the redistributed profits are subject only to corporate income tax or to business tax as well.

The reform of international corporate taxation consists of two pillars: the redistribution of taxation rights in favor of the countries in which companies generate their sales (pillar 1) and the levying of a global minimum corporate tax of 15% (pillar 2).