Fiscal policy: It's a good thing that the minimum tax is coming later

For the time being, German companies have to assert themselves under very uncertain external circumstances.

It is helpful if politicians refrain from additional burdensome requirements or at least postpone such projects.

The heads of the tax departments of the corporations will be relieved to hear that the EU finance ministers want to take more time with the introduction of the internationally agreed minimum tax.

The mammoth project should not take effect until 2024, not next year.

The minimum tax is intended to prevent corporations from reducing their tax burden below 15 percent by shifting profits.

But the necessary EU legal basis is still missing, because the countries involved do not want to damage their location or lose tax revenue.

There is still a long way to go from agreement at EU level to legally secure and practicable (!) implementation regulations for local companies.

But such a fundamental system change must follow the principle of “thoroughness before speed” if its benefits are to outweigh the costs for Germany.