On 28 May 2021, the German Federal Council (upper house of parliament - Bundesrat) approved the law for the ratification of the pending protocol to the 1996 income and capital tax treaty with Estonia. The protocol, signed 15 December 2020, is the first to amend the treaty and includes changes to bring the treaty in line with BEPS standards. It will enter into force once the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force.