1. Has there been a formal indication of the intention to implement Pillar Two/GloBE rules?
  2.  What is the implementation status of Pillar Two/GloBE rules?
  3.  Have the local tax authorities published guidelines commenting on Pillar Two/GloBE rules?
  4.  When will the Income Inclusion Rule (IIR) come into force? 
  5.  When will the Undertaxed Payments Rule (UTPR) come into force?
  6.  Is there any intention to implement a Qualifying Domestic Minimum Top-Up Tax (QDMTT)? If so, when?
  7. Further comments

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Germany
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1.Has there been a formal indication of the intention to implement Pillar Two/GloBE rules?

Yes.

2. What is the implementation status of Pillar Two/GloBE rules?

  • In order to give the interested specialist public the opportunity to comment as early as possible, the Federal Ministry of Finance had already published an initial discussion draft on March 20, 2023.
  • After incorporating the extensive comments, the Federal Ministry of Finance presented a draft bill on July 10, 2023. This formed the basis for the subsequent government draft, which initiated the ordinary legislative procedure.
  • August 16, 2023: Publication of the government draft (Regierungsentwurf) . 
    The Bundesrat (upper house of the German parliament) dealt with the draft on 29 September 2023 . The Bundesrat emphasized the importance of the law and welcomed the regulation of safe harbours, but nevertheless asked the Federal Government to examine the addition of further simplification measures. The Federal Government explained in its counterstatement that it would examine this proposal.  
  • Following the approval by the Federal Council (Bundesrat) on 15 December 2023, the law was promulgated in the Federal Law Gazette on December 27, 2023 and came into force on December 28, 2023.

3. Have the local tax authorities published guidelines commenting on Pillar Two/GloBE rules?

There is no information in this respect. However, the draft bill includes an extensive Explanatory Memorandum.

4. When will the Income Inclusion Rule (IIR) come into force? 

Fiscal years beginning after December 31, 2023.

5. When will the Undertaxed Payments Rule (UTPR) come into force?

Fiscal years beginning after December 30, 2024
This does not apply to groups of entities whose ultimate parent companies are located in member states of the European Union that have exercised the option under Article 50(1) of Directive (EU) 2022/2523.

6. Is there any intention to implement a Qualifying Domestic Minimum Top-Up Tax (QDMTT)? If so, when?

Yes
Fiscal years beginning after December 31,  2023.

7. Further comments

'The August 16, 2023 government draft takes into account the Pillar 2 administrative guidelines published by the OECD in February 2023.