ARTICLE · 17 MAY 2002

248. 2001 Business Tax Legislation

KPMG Germany

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Thomas Sauter, KPMG Frankfurt

For editorial cut-off date, disclaimer, and notice of copyright see end of this article.

1. Legislative history and general purpose

The German government introduced the Act for the Further Development of Business Tax Law (Gesetz zur Fortentwicklung des Unternehmenssteuerrechts) in the Federal Parliament (Bundestag) in August 2001. Following revisions in early November 2001 by the Parliamentary Finance Committee, the bill encountered the expected opposition in the Federal Council (Bundesrat). A compromise version drafted by a conference committee was ratified by both Parliament and the Federal Council in mid-December. The legislation was signed and promulgated as the law of 20 December 2001.¹

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