Germany Overhauls Corporate Tax Guidelines with Bumper Modification

An amendment to German law passed Friday will make it harder for companies to get refunds for withholding taxes under treaties.

Experts have welcomed some of the changes in the wide-ranging amendment, which modifies various aspects of German corporate tax law, but have also cautioned that it could also make audits more strenuous.

The measure, approved by the Federal Council, is one of several major tax bills Chancellor Angela Merkel’s government is hoping to sign into law ahead of the September elections.

The bill now needs to be signed into law by German Federal President Frank-Walter Steinmeier. After this formality, …