Tax & Legal

Brexit: The United Kingdom of England, Wales, Scotland and Northern Ireland is leaving the European Union: A first analysis of the potential tax implications.

The Supreme Tax Court has held that donations to charities in other EEA countries must be supported by receipts and other documents. These documents need not necessarily be completely in conformity with the German forms, though they should demonstrate the substance.

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 confirmed that the maximum foreign income limit for the option to treat a non-resident spouse as taxable does not apply within the EU.

The finance ministry has put church tax paid in other EU/EEA member states on an equal footing with its German counterpart from the point of view of a deduction as an allowable personal expense.