The German Ministry of Finance has published a discussion draft of a law for the implementation of the directive to ensure global minimum taxation for multinational enterprise groups and large domestic groups in the Union (Minimum Taxation Directive Implementation Act - MinBestRL-UmsG). The law provides for the implementation of the Pillar 2 global minimum tax in accordance with Council Directive (EU) 2022/2523 of 14 December 2022 (previous coverage), including the income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR), as well as a qualified domestic minimum top-up tax (QDMTT).

The law will generally apply for the first time to financial years beginning after 30 December 2023, although the UTPR will apply to financial years beginning after 30 December 2024. However, the UTPR will apply to financial years beginning after 30 December 2023 in respect of constituent entities of groups whose ultimate parent companies are located in EU Member States that have exercised the option for a delayed application of the IIR and UTPR (Article 50 of the Directive). Article 50 provides that a Member State may opt to delay the application of the IIR and UTPR for six years if no more than 12 ultimate parent entities of in-scope groups are located in the Member State.