First Draft Issued: The Federal Ministry of Finance has published a package of measures designed to combat base erosion and profit shifting
Tax & Legal
The Supreme Tax Court has held that a parent company cannot be deemed to have earned income from allowing its Polish subsidiary to register locally in the group name.
The Supreme Tax Court has held that the €100.000 de minimis exclusion from the trade tax add-back for interest applies to positive amounts only.
The Supreme Tax Court has held that the 80% trade tax exemption for shipping in international waters only applies to income from ship charters if the claimant has equipped and manned the ship himself.
The Supreme Tax Court has held that the German partners in a US LLP law firm should tax their partnership earnings in the country where they carried out their practice.
In this issue: Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC
The finance ministry has decreed that custom books of photographs commemorating private occasions are to be taxed at the standard rate of VAT.
The ECJ has held that an obligation on a German bank to report assets held by German customers of its Austrian branch to the German tax authorities does not restrict the bank’s freedom to establish itself in Austria.
The Supreme Tax Court has confirmed its previous case law that the foreign exchange loss on the return of capital invested in a foreign partnership is part of the trading results attributable to that partnership. Hence, it is not deductible in Germany if the income is not taxable by treaty or statute.
An ECJ advocate general has suggested that a tax treaty can justify a hindrance on the free movement of capital from granting a tax credit privilege to recipients of a dividend from a third country but not to those with dividends from a member state.