The following link leads to a recent interview (video and transcript) with Pascal Saint-Amans, director of the OECD Centre for Tax Policy and Administration on the OECD’s BEPS (base erosion and profit shifting) and associated projects.
Tax & Legal
The Supreme Tax Court has asked the ECJ for a ruling on the determination of the amount of deductible input VAT of holding companies with taxable outputs and on the conditions for joining VAT groups.
The finance ministry has issued a decree on the place of performance of the services supplied to, in particular, offshore wind farms.
An ECJ advocate general has suggested the court hold that the Dutch provisions on tax groups are in conflict with the freedom of establishment insofar as they do not allow domestic sub-subsidiaries of a foreign subsidiary or domestic subsidiaries of a foreign parent to join or form a Dutch tax group.
The ECJ has held that a lower VAT rate for taxis is only justified if there is a – for the customer – noticeable difference in the service.
The ECJ has held that if two businesses are linked through personal or other non-contractual relationships and act in concert neither will qualify for SME privileges, even if it meets the formal criteria in isolation and the arrangements in question are not intended as an abuse of SME rules.
We have revised our Guide to Doing Business and Investing in Germany to reflect the position as of January 1, 2014. A pdf version of the new edition can be downloaded from http://www.pwc.de/de_DE/de/internationale-maerkte/assets/fachbuch-doing-business-germany-2012.pdf. The printed edition will be available shortly.
The Supreme Tax Court has held that insurance taken out with an EU/EEA insurer to cover warranty risks on a plant constructed outside Germany is free of insurance tax. However, the same insurance taken out with a non-EU/EEA insurer is subject to the tax if the insured person is a domestic legal or natural person.
The Supreme Tax Court has held that the pre-2009 loss on the sale of a bond with a floating interest rate could only be offset against capital gains on the sale of investments in the same or in future years.
The OECD has published a new standard on the automatic exchange of information between tax authorities. This is complemented by a model competent authority agreement drafted as a bilateral treaty between two states.