20. November 2024 Family foundation as financial institution as defined in Sec ... In a most recent decision, the Supreme Tax Court held that the legal form of an institution is not relevant for the qualification as financial company within the meaning of Section 8b (7) sentence 2 of the Corporation Tax Act to be read in connection with Section 1 (3) of the German Banking Act. Therefore, a family foundation under private law can also be considered as finance institution if they are primarily engaged in financial activities. Kategorien: Supreme Tax Court casesSchlagwörter: Financial Services (FS) / Finanzdienstle ...
19. November 2024 Inheritance tax: Tax-free amount in case of parent deemed de ... German Civil Code in Section 2346 provides for a fiction of pre-death inasmuch as the person renouncing is excluded from intestate succession as though he or she had no longer been alive at the time of the devolution of the inheritance. The grandson of the deceased (the plaintiff) who had invoked this provision claimed the higher tax-free amount of €400,000 upon the inheritance. To no avail, as the Supreme Tax Court held in a most recent decision. Kategorien: Supreme Tax Court casesSchlagwörter: inheritance tax allowance
19. November 2024 Funeral costs paid under a death insurance policy as deducti ... If the testator has assigned benefits from a death benefit insurance policy to a funeral home during his lifetime the estate is increased by the heirs' claim for a benefit in kind towards the funeral home. The costs of the funeral are fully deductible as liability of the estate. Kategorien: Supreme Tax Court casesSchlagwörter: insurance cover, limited inheritance tax ...
18. November 2024 ECJ to decide on failure of Germany to eliminate discriminat ... 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. Kategorien: From EuropeSchlagwörter: replacement reserve, sale of real estate
17. November 2024 Application for transfer at book value to be made also in a ... In a most recent judgment, the Supreme Tax Court held that the application for maintaining the book values in accordance with Section 3 (2) sentence 1 of the German Reorganization Tax Act can be made in the notarial deed on the reorganization of which the notary sends a certified copy to the responsible tax office in accordance with § 54 para. 1 of the Income Tax Implementation Ordinance. Kategorien: Supreme Tax Court casesSchlagwörter: Tax Book Values, restructuring, transfer ...
15. November 2024 ECJ: Liability of managing director for failure to duly noti ... Following a request for a preliminary ruling from the Supreme Court of the Netherlands, the European Court of Justice commented on the Dutch legislation providing for joint and several liability of the establishment's administrator and specifically the circumstances under which the shareholder and managing director of a Dutch holding company may be held liable for the company’s inability to pay the taxes due. Kategorien: European Court of JusticeSchlagwörter: owner/manager, liability for VAT
13. November 2024 MoF: Wage tax treatment of employer‘s expenses for employees ... In a recent circular, the Federal Ministry of Finance (MoF) comments on the question of how expenses for safety measures borne or reimbursed by the employer for employees who are exposed to a specific risk due to their professional position are to be treated for wage tax purposes. The detailed circular was issued with reference to the outcome of discussions with the highest tax authorities of the German Federal States. Kategorien: Official PronouncementsSchlagwörter: wage tax
11. November 2024 Trade tax deduction of foreign branch income and profit allo ... The Supreme Tax Court had to decide on the profit allocation between Germany and the Netherlands in the case of construction sites. Among other things, the court held that the portion of the trading income which is attributable to the foreign permanent establishment (as not having been earned in Germany) must be eliminated from the trade tax basis according to Section 9 No. 3 Trade Tax Act even if Germany would not be prevented from taxing the entire trading income under the relevant double tax treaty. Kategorien: Supreme Tax Court casesSchlagwörter: Foreign branch, trade tax deduction
08. November 2024 Heat supplies free of charge for business purposes subject t ... In a most recent decision, the Supreme Tax Court held that the heat which is supplied free of charge to other entrepreneurs for their business is a supply of goods for consideration for which VAT must be accounted. This also applies in situations where the heat supplied is used by the recipient for transactions that entitle to an input VAT deduction. Kategorien: Supreme Tax Court casesSchlagwörter: consideration in kind, heat supplies
08. November 2024 MoF: Applicable wage tax table for temporary employment in G ... On 8 October 2024, the Federal Ministry of Finance (MoF) published a new letter on the determination of tax-free and taxable wages in accordance with double taxation agreements and the foreign activity decree in the wage tax deduction procedure. This current letter replaces the previous MoF letter dated 14 March 2017 and is to be applied for all wage payment periods after 31 December 2024. Kategorien: Official PronouncementsSchlagwörter: wage tax
06. November 2024 EU Council agrees on VAT in the digital age package On 5 November 2024 the Council reached an agreement on new measures that will bring the EU’s value added tax (VAT) rules into the digital age. With new rules on electronic invoices and real-time data reporting, as well as business carried out through digital platforms, this package of legislation will fight tax fraud, support businesses, and promote digitalization. Kategorien: From EuropeSchlagwörter: Taxation of digital economy, digitalizat ...
30. Oktober 2024 ドイツにおける電子インボイスに関するアップデート 2024年10月15日、ドイツの連邦財務省は、2025年1月1日以降の国内事業者間の販売取引における電子インボイス発行の義務化に関連するレターを公表しました。そこで、本Newsflashでは、当該レターの重要なトピックについてまとめています。 Kategorien: Japan Business Network (JBN) NewsflashSchlagwörter: Japan
28. Oktober 2024 Taxation of severance payments for cross-border commuters un ... In a recent judgment the Supreme Tax Court decided that - according to Article 13 paragraph 1 of the double tax agreement (DTT) with France - Germany has the right to tax the severance pay as a result of the termination of an employment relationship insofar as the compensation relates to the period during which the employee (who was subject to unlimited tax liability at the time) lived and worked in Germany. The taxable amount must be calculated by considering the duration of the domestic residence compared to the term of the employment. The so-called cross-border commuter rule in Article 13 para. 5 of the DTT does not preclude Germany’s right of taxation. Kategorien: Supreme Tax Court casesSchlagwörter: cross-border commuters, severance paymen ...
25. Oktober 2024 Presentation of documents to the tax authorities to comply w ... According to a decision of the Supreme Tax Court, the tax office's request for rental agreements from the landlord in accordance with Section 97 Fiscal Code must comply with the guidelines laid down in the General Data Protection Regulation (GDPR). In its judgment. the Supreme Tax Court held in favor of the tax office and that the plaintiff is obliged to produce the relevant documents. Kategorien: Supreme Tax Court casesSchlagwörter: Data processing
25. Oktober 2024 ECJ: Partial recovery of commission in case of early repayme ... In a preliminary request from Poland the European Court of Justice decided that the consumer can recover part of the commission linked to the granting of credit if he or she has not been informed that this commission is not dependent of the duration of the contract. The same applies if the consumer has paid that commission in a single instalment when concluding the mortgage agreement. Kategorien: European Court of JusticeSchlagwörter: early repayment, loan
25. Oktober 2024 Bundestag adopts Finance Act 2024 Following the recommendation of its Finance Committee, the Bundestag adopted the Finance Act 2024 (FA 2024) in an amended version on 18 October 2024. Kategorien: Official Pronouncements, LegislationSchlagwörter: RETT, General Tax Code, Income Tax Act, ...
23. Oktober 2024 MoF: Premature termination of a service contract in the tele ... In a recent circular, the Federal Ministry of Finance /MoF) commented on the VAT treatment of compensation payments in the event of a premature termination of telecommunication contracts with a minimum commitment term. Kategorien: Official PronouncementsSchlagwörter: compensation payment, telecommunications
21. Oktober 2024 EUのコーポレート・サステナビリティ・デューディリジェンス指令 ... 時、日本を含む世界各国において、ESG/サステナビリティに関する議論が活発化する中、各国政府や関係諸機関において、ESG/サステナビリティに関連する法規制やソフト・ローの制定又は制定の準備が急速に進められています。その一環として、2024年7月25日、EUのコーポレート・サステナビリティ・デューディリジェンス指令（Corporate Sustainability Due Diligence Directive（CSDDD））（Directive 2024/1760）が発効しました。 今回は「EUのコーポレート・サステナビリティ・デューディリジェンス指令（CSDDD）の発効と日本企業の対応」についてご紹介します。 Kategorien: Japan Business Network (JBN) NewsflashSchlagwörter: Japan
21. Oktober 2024 No tax exemption of foreign branch income in case of treaty ... The Supreme Tax Court decided that the “switch-over" provision in the respective tax treaties with Russia and Romania, which changes the exemption method to the credit method, was to be applied by observing the activity requirements set in Section 8 (1) of the German Foreign Tax Act. Kategorien: Supreme Tax Court casesSchlagwörter: foreign tax credit, switch over provisio ...
18. Oktober 2024 Tax & Legal Newsflash – German Pillar 2 Notification Require ... Pillar 2 Notification Requirement in Germany – Head of the Minimum Tax Group Kategorien: Legislation, Tax & Legal NewsflashSchlagwörter: Steuern / Tax, Gesetzgebung
