On 10 June 2021, the German Bundestag (lower house of parliament) approved the draft Law to Prevent Tax Avoidance and Unfair Tax Competition (the Tax Haven Defense Law). The draft law includes defensive measures designed to restrict individuals and companies from continuing or starting new business relationships with non-cooperative jurisdictions (tax havens), based on the EU list of non-cooperative jurisdictions. The defensive measures include:
- Payments to a tax haven would be non-deductibl…