German Ministry of Finance Releases Draft Annual Tax Act 2026

The German Ministry of Finance has released the initial draft of the Annual Tax Act 2026 (Jahressteuergesetzes 2026 - JStG 2026). Some of the main proposed measures include:

• The introduction of a formal advance registration system where a VAT group will no longer apply automatically by law, but will instead require an explicit declaration by the parent entity to the tax authorities, which is meant to prevent unintended tax groupings;
• An increase in the interest rate for back taxes and tax r…