Tax & Legal

Section 32a(1) Sentence 1 of the Corporation Tax Act, as a provision amending the rules on hidden profit distributions, also permits the corresponding recognition of hidden contributions indirectly connected with the hidden profit distribution as subsequent acquisition costs for a participation in another corporation, the Supreme Tax Court said in a recent decision.

In response to a request for a preliminary ruling from Latvia, the European Court of Justice (ECJ) must examine how the term “double taxation” is to be interpreted within the meaning of the EU Dispute Resolution Directive. The mere fact that the same income could, in the abstract, fall within two (or more) tax jurisdictions is not, in any event, sufficient to establish double taxation within the meaning of the Dispute Resolution Directive, according to the Advocate General in her Opinion.

The request for a preliminary ruling from the Supreme Tax Court involves the repair and maintenance work of a sailing boat solely imported for this reason from Switzerland. In its decision, the General Court held that transporting the boat to Germany is not an importation of goods subject to VAT and does not constitute use of those goods under Article 124(1)(k) Customs Code.

The Federal Ministry of Finance (MoF) commented on the application of the Supreme Tax Court decision dated 10 October 2025 (case: IX R 4/24). In its circular, the MoF points out that - contrary to this decision by the Supreme Tax Court - previous case law continues to apply to contractually agreed waivers of the right of usufruct until the end of the day on which the decision was published in the Federal Tax Gazette.

In his Opinion, Advocate General Rantos proposes that the temporary solidarity contribution on surplus profits of energy sector companies, introduced in response to the energy crisis caused by the war in Ukraine, is consistent with EU law.

In a most recent judgment, the European Court of Justice (ECJ) clarifies the conditions for determining the domicile for tax purposes of officials and other servants of the European Union.

Following a request for preliminary ruling from Poland, the European Court of Justice (ECJ) again is asked to address the framework of exit taxation and its method of collection. In her Opinion, the Advocate General proposes that the ECJ decide that, for example, deferring the tax payment for a maximum of 5 years is necessary in light of the legitimate objective for effective collection of the exit tax with no need to await the actual disposal of the relevant assets.

2026年7月16日に公表された税務・金融犯罪対策アクションプランにより、ドイツ連邦政府は税務上の不正行為等に対する明確な方針を打ち出しました。本Newsflashでは、その概要についてご紹介します。

The Bundesrat has proposed targeted amendments to the Federal Government’s income tax reform, focusing on Sunday and public holiday allowances, trade tax rules for data centres, and measures intended to reduce bureaucracy

The European Commission decided to refer Germany to the European Court of Justice for having failed to remedy the infringement of the free movement of capital (Article 63 TFEU and Article 40 of the EEA Agreement) due to its discriminatory tax treatment of reinvested capital gains upon sale of real estate located in Germany.

In today’s judgment, the General Court of the EU held that Union law precludes the German practice whereby the taxpayer's good faith in fulfilling the conditions for the margin scheme is not taken into account already during the tax assessment procedure but rather considered later in separate proceedings for equitable relief.

The Council of the European Union has updated its list of non-cooperative tax jurisdictions, reaffirming its focus on tax transparency, fair taxation, and action against tax avoidance.

In a recently published decision, the Supreme Tax Court took the opportunity to clarify and further develop the established principles regarding financial integration as a requirement for the existence of a VAT group within the meaning of Section 2( 2) Number 2 of the German Value-Added Tax Act.

In a recent judgment, the Supreme Tax Court held that, regarding the tax exemption for certain corporate group reorganizations under Section 6a of the Real Estate Transfer Tax Act and following a split-up in accordance with the Reorganization Act, a stake held by the split-off company in a subsidiary of the acquiring company for more than five years must be attributed to the acquiring company as partial universal successor if the shareholding in the subsidiary was the subject matter of the relevant acquisition agreement.

For an insolvent debtor, the insolvency administrator’s fees may be deductible as current or subsequent business expenses, provided the insolvency administrator’s management activities help to satisfy the insolvent debtor’s business liabilities. With this recently published decision, the Supreme Tax Court has clarified, in principle, an issue of great practical importance in cases of insolvency proceedings.

Last week, the Members of the European Parliament approved a major reform of the EU Customs Code that introduces stricter rules for e-commerce and establishes a new customs authority.

In a recent judgment, the Supreme Tax Court decided that the statutory interest levied on late payment or refund of value added tax amounts pursuant to Section 233a of the General Tax Code does not contravene EU law.

According to the Supreme Tax Court (I R 20/23) in a recently published decision, a pre-constituted dependent family foundation (“vorkonstitutionelle unselbständige Familienstiftung”) administered by a local authority qualifies as a private-law foundation without legal capacity under Section 1(1)(5) of the Corporation Tax Act, even if its approved statutes designate it as a public-law foundation. Its legal character depends on the overall circumstances—particularly its purpose and organisational structure—rather than on the wording of its statutes alone. Because the foundation primarily served private family interests and was not integrated into the state administration, it was subject to unlimited corporate income tax liability.

If a valuation report is prepared for an inherited property and if that same property is then sold a few months later for a purchase price significantly higher than the value determined in the appraisal, the Supreme Tax Court clarified that neither the appraisal nor the purchase price takes precedence from the outset. However, under certain conditions a properly prepared value appraisal may be suitable as evidence of the lower fair market value.

Certain care facilities are exempt from trade tax if, in at least 40 percent of cases, the costs of care are covered in full or for the most part by statutory social insurance or social welfare providers. According to a decision of the Supreme Tax Court, this also applies if the services are billed through a third party.