International taxes in brief: September

Germany recommends changes to RETT
On 21 June 2018, the finance ministers of the German federal states announced an initiative to propose changes to the Real Estate Transfer Tax (RETT) code that would significantly tighten the rules. Under current rules, RETT is triggered on direct transfers of real estate and where 95% or more of the shares in a German real estate-owning company are directly or indirectly transferred to a new owner, or where 95% or more of such shares are directly or indirectly combined for the first time in the hands of a new shareholder (or if there is a 95% or greater change either directly or indirectly of the partners in a partnership). Changes to the RETT rules are specifically mentioned in the current coalition agreement between the governing parties, so it is likely that some form of the above measures will be approved and possibly could be implemented during 2018. It also is possible that the measures would apply retroactively from the date the first draft law becomes publicly available.

Multilateral Instrument (MLI) ratified by Slovak Republic
On 30 July 2018, the Slovak Republic ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). The Slovak Republic submitted its MLI position at the time of signature, listed its reservations and notifications and included 64 tax treaties that it wishes to be covered by the MLI.

EU publishes overview of preferential tax regimes
On 20 July 2018, the Code of Conduct Group (Business Taxation) published an overview of the preferential tax regimes it has examined since it was created in March 1998. The overview is available here.

The article is part of dReport – September 2018, Tax news; Grants and investment Incentives.