International tax competition makes it possible for multinational enterprises subject to taxation in different countries to minimise their tax burden. While national governments tend to see this as a risk to their tax revenues, companies which have established themselves internationally must be considered a boon to the German treasury. Despite the opportunities for transferring profits abroad, they contribute handsomely to the country’s fiscal system.
The harmonization of corporate taxation at an international level has been on the political agenda for many years. Both the Organization for Economic Cooperation and Development (OECD) and the European Commission have presented reform projects in this regard, ...
The German government’s fiscal responses to the Covid-19 pandemic and the Ukraine war in an attempt to cushion their impact have driven up the country’s general government debt-to-GDP ratio.