The German cabinet adopted the draft Defence against Tax Havens Act on 31 March 2021. With the new law, the German government is taking action against tax evasion, tax avoidance and unfair tax competition from tax havens.
The main changes in 2018 include larger tax-free allowances, higher child benefit, improved old-age provision and measures to fight tax evasion and tax fraud. The beginning of a new year is generally a time when regulatory changes are introduced that can impact citizens and companies in a number of ways. Here is an overview of the most important developments.