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German Cabinet Adopts Draft Law Limiting Deductions of Related Party Royalty Payments Benefiting from Harmful IP Regimes

|Proposed Changes|Germany
Germany

On 25 January 2017, The German Federal Cabinet announced the adoption of the draft law targeting profit shifting by multinational groups through royalty payments ({News-2016-12-30/P/2- previous coverage}). The law includes measures to limit the deduction of royalty payments to related parties if the income is taxed at a rate of less than 25% as a result of the benefits of an IP regime not in co…

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