Broadcasting license under the State Media Act not an intang ...

Considering the general context and framework of the German media law, the “broadcasting license” issued to a private broadcaster of radio or television programs is not, from a purely tax point of view, to be treated as an intangible asset for which capitalization in the tax balance sheet is mandatory. According to the Supreme Tax Court this is for want of a sufficient enough economic transferability of the broadcasting license. The fees paid in connection with the admission as regional TV-station, as in the case of dispute, are in general immediately tax deductible.

Reconstruction balance sheet may include newly capitalised i ...

The Supreme Tax Court has held that the opening balance sheet of a partnership converted from a GmbH may include intangibles that the GmbH could not take up in its closing balance sheet.

No input tax deduction on acquisition of intangibles to be p ...

The ECJ has held that a German tax consultant cannot deduct the input tax on the acquisition of an intangible from one partnership for use by another for lack of his own economic activity.

Compulsory product registration costs incurred on date of ap ...

The Supreme Tax Court has held that the costs of registering a pesticide arise with the application. As part of the cost of developing the product, they are immediate expense in view of the prohibition on capitalisation of own intangibles.

No tax on off-balance sheet intangibles on change to tonnage ...

The Supreme Tax Court has held that the hidden reserve calculation on the change to tonnage tax (shipping lines) cannot include those intangibles that could not be taken up under the accounting rules prudently applied.

Tax administration issues guidelines on use of group name

The German Finance Ministry has commented on possible profit adjustments under Sec. 1 Foreign Tax Act with respect to the use of group name and logo between the taxpayer and a related party.

Sale-and-lease back not rental but other service subject to ...

The Supreme Tax Court considers a sale-and-lease-back transaction as a taxable other service rather than a lease or the tax-exempt grant of a loan if the chosen scenario is a reasonable non-tax driven choice of form used to enable the seller (lessee) to enjoy certain accounting and reporting benefits.

Ruling fee based on immediate tax effect

The Supreme Tax Court has held that the value-based fee for a tax office ruling is to be based on immediate tax effects only, ignoring secondary consequences.

Sky subscription for German football league games may consti ...

The Supreme Tax Court has ruled the expenses of a football trainer for a Sky subscription to German football league (“Bundes League”) games may be treated as tax-deductible expenses from self-employed income. The appellant was a full-time trainer of goal keepers working in licensed football.

No objection to 10 year tax deferral on transfer of assets a ...

An ECJ advocate general has suggested the court rule that a German practice of allowing deferral of taxation on the hidden reserves (appreciation in value) in intangible assets transferred abroad is proportional and reasonable in the light of the overall need to ensure a fair distribution of taxing rights between member states.

Italy Step up regime: Italy reinstates modified ‘step-up’ re ...

German Finance Minister talks “minimum taxation”

According to various statements of the German Finance Minister Olaf Scholz on 22 May 2019, a system of international minimum taxation will be discussed at the forthcoming G20 (June 2019) and G7 (August 2019) meetings. The aim is to agree such a system (within the terms of the Global Anti-Base Erosion "GloBE" agenda and given the name “BEPS 2.0”) with the other 128 states of the OECD in the Summer of 2020.

Update: Instant write-off of certain digital assets planned

According to the results of a joint conference of representatives of the Federal Government and local states (Länder) of 19 January 2021 a significant improvement in the tax treatment of certain digital assets is planned. --- The reaction of the tax authorities was not long in forthcoming.

Tax & Legal News - Issue 2, February 2016

In this issue: PwC Reports, Official Pronouncements, Supreme Tax Court Cases, From Europe and From PwC

Non-typical silent partnership excludes company from Organsc ...

The finance ministry has decreed that a company with an untypical silent partner cannot be a member of a corporation tax group.

Italy reshapes format, contents and requirements for transfe ...

OECD publishes International VAT/GST Guidelines

The International VAT/GST Guidelines now published present a set of internationally agreed standards and recommended approaches to address the issues that arise from the uncoordinated application of national VAT systems in the context of international trade. The Guidelines were adopted as a Recommendation by the Council of the OECD in September 2016.

OECD releases latest edition of the Transfer Pricing Guideli ...

On 20 January 2022 the OECD released the 2022 edition of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. The current version consolidates in one publication the changes and adjustments that have taken place to the 2017 version of the OECD Transfer Pricing Guidelines.

OECD interim report on BEPS

The OECD has published an interim report on the first seven of its fifteen planned suggestions towards combatting base erosion and profit shifting (BEPS) by multinationals through aggressive tax planning and tax avoidance projects.

Restriction of tax relief on royalty payments: draft bill re ...

On 25 January 2017 the German government published a draft bill proposing a restriction of tax relief on royalty payments made to related parties from 2018 onwards.