Summary
The draft raises the withholding-tax exemption threshold for licence payments from €10,000 to €100,000, extends platform reporting to providers in treaty countries, implements the OECD side-by-side package in the Minimum Tax Act, and raises interest on tax arrears and refunds from 0.15% to 0.3% a month from 2027. It still needs Bundestag and Bundesrat approval.
What it means for you
Indian software and IP licensors paying German withholding tax may benefit from the higher exemption threshold once enacted.
This summary is general information, not legal advice. The outcome of any case depends on its facts; read the source and take advice before acting.