POSITION | TAX POLICY | MINIMUM TAX
Suspension and Simplification of the Global Minimum Tax Preventing competitive disadvantages for the European businesses
July 2025 Global Minimum Tax is Questioned Since its inception, the BDI has constructively participated in the discussion on the global minimum tax and supported the OECD's efforts to establish a "global level playing field" and therefore minimize taxinduced distortions of competition. However, the global minimum tax has evolved into an overly complex bureaucratic burden. It imposes a significant administrative burden on taxpayers and presents tax authorities with an almost unmanageable enforcement challenge, especially in light of their limited resources. It is therefore not surprising that some state tax authorities, as well as Chancellor Merz, have openly called for a suspension of the minimum tax. The G7's June 2025 agreement to exclude U.S. companies from the global minimum tax must be implemented without delay. However, this effectively undermines the foundation of the minimum tax. Without U.S. participation, the tax loses its global character, primarily resulting in competitive disadvantages for Germany and Europe as business locations. Therefore, we expressly welcome the German government’s clear stance that German companies should not be disadvantaged when other countries depart from the global consensus.
Global Agreement Remains Out of Reach The original global consensus is clearly no longer intact. This year's actions by the United States have made that abundantly clear. Not only did the U.S. withdraw from the global minimum tax, but it also threatened to retaliate against any country that applies the minimum tax to U.S. companies. India and China have not implemented the global minimum tax either, meaning the vast majority of the global economy now falls outside its scope. It is primarily the European Union that has mandated the implementation of the global minimum tax through its directive, a step that was already legally questionable in terms of EU competencies and that, in light of shifting geopolitical realities, presents growing strategic challenges.
BDI | Abteilung Steuern und Finanzpolitik | T: +49 30 2028-0 | steuerpolitik@bdi.eu | www.bdi.eu