Global Daily Tax News, German Cabinet Approves Ratification Of Int'l Tax Pacts, (Jun 1, 2026)

Germany's Cabinet on May 27, 2026, approved the nation's participation in a number of international tax cooperation pacts.

First, the Cabinet approved a law on the ratification of the Crypto Asset Reporting Framework Multilateral Competent Authority Agreement (CARF MCAA).

The CARF provides for the automatic exchange of tax-relevant information on crypto-assets and was developed to address the rapid growth of the crypto-asset market. It will expand the scope of the Common Reporting Standard (CRS) – the international standard providing for the automatic exchange of information in tax matters – to certain electronic money products and central bank digital currencies.

Changes have also been made to ensure that indirect investments in crypto-assets through derivatives and investment vehicles are now covered by the Common Reporting Standard.

Second, the Cabinet approved a law on the ratification of the addendum to the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information.

The CRS MCAA facilitates the international exchange of financial account information, provided by financial institutions under the Common Reporting Standard – the international standard for the automatic exchange of information – to a taxpayer's home state tax agency.

In implementing the provisions of the addendum, Germany will expand the scope of information it will exchange under the Common Reporting Standard MCAA following the expansion of the Common Reporting Standard in 2023.

In particular, the CRS was amended to bring certain electronic money products and Central Bank Digital Currencies in scope. Changes were also been made to ensure that indirect investments in Crypto-Assets through derivatives and investment vehicles are covered by the CRS.

Amendments were also made to strengthen the due diligence and reporting requirements, including the reporting of the role of each Controlling Person, and to foresee a carve-out for genuine non-profit organizations.

Finally, the Cabinet approved Germany's participation in the Multilateral Competent Authority Agreement on the Automatic Exchange of Information on Digital Platform Income (DPI MCAA).

Under the MCAA, countries will exchange information received from digital platforms, such as websites and mobile apps that allow taxpayers to sell goods, offer online and offline personal services, or rent out immovable property or means of transport.