Germany's Federal Cabinet Approves Draft Legislation Amending the General Tax Code Concerning Foreign Tax Credit Calculation

On 24 September 2014, the German Federal Cabinet approved a draft bill amending the General Tax Code and other tax laws in regard to the calculation of foreign tax credits and certain other matters.

According to guidance on the calculation issued by the Ministry of Finance in September 2013 and as amended by the bill, the maximum credit amount for corporate tax payers will still be calculated by multiplying the amount of corporate income tax due by the result of the ratio between foreign in…