Suchergebnisse für: `loan-interest` (22 gefunden)

  7. 07. Dezember 2025

    No accrual of loan interest if terms of payment are prolonge ...

    If a majority shareholder and the company decide that the interest maturity date from a loan granted to the company should be extended, the interest does not immediately accrue to the shareholder if the amendment was concluded prior to the original interest due date. According to the Supreme Tax Court, this applies irrespective of whether the terms and circumstances of the prolongation are customary and in line with arm's length principles.

    Kategorien: Supreme Tax Court cases
    Schlagwörter: accruall, deferral, interest period
  8. 02. Dezember 2024

    Calculation of gift tax for low-interest loans

    In a recent judgment the Supreme Tax Court held that the granting of a loan at an interest rate which is not customary in the market is subject to gift tax as gratuitous contribution. When calculating the interest advantage the standard (typically used) interest rate of 5.5% as mentioned in Section 15 (1) of the Valuation Act cannot be applied if a lower market value for comparable loans has been established.

    Kategorien: Supreme Tax Court cases
    Schlagwörter: loan interest, low interest
  14. 31. Oktober 2013

    Foreign partner receives business income from the interest o ...

    The Supreme Tax Court has held that a foreign limited partner must accept attribution of the shares in a British distributor company held by the partners to the partnership. In consequence, the interest on a shareholder loan falls to the partnership, where it is requalified as trading income. The interest clause in the double tax treaty with the partner’s home country is inapplicable.

    Kategorien: Supreme Tax Court cases
    Schlagwörter: shareholder loan, partner, interest inco ...
  17. 18. Dezember 2023

    Excess drawings in a two-tier partnership structure

    In a decision published on 14 December 2023 on Section 4 (4a) of the German Income Tax Act (restriction of deductible interest expense in the case of excess drawings), the Supreme Tax Court decided that the rule whereby Section 4 (4a) Income Tax Act (ITA) is to be applied for each business in isolation – a so-called business-related application - also applies to multi-level partnership structures. As a result, the transfer of a rolled-over profit in accordance with Section 6b ITA (roll-over relief) to another legal entity does not lead to a contribution to the transferring legal entity - (i.e. a contribution which would reduce the level of excess drawings) - due to the fact that no contributable asset was involved.

    Kategorien: Supreme Tax Court cases
    Schlagwörter: non-deductible expenses, loan interest, ...
  18. 30. April 2025

    Tax treatment of shareholder loan granted to asset-managing ...

    A shareholder loan granted to an asset-managing partnership is not recognized from a tax point of view insofar as the company's loan liability is attributable to its shareholder for tax purposes (Section 39 (2) no. 2 of the German Fiscal Code). According to a recent decision of the Supreme Tax Court, the loan agreement neither leads to deductible income-related expenses for the borrower nor to income from capital assets for the lender but is rather considered a tax-neutral contribution. This would be different only in the case of commercially active partnerships.

    Kategorien: Supreme Tax Court cases
    Schlagwörter: IFRS (Asset Management), partnership, sh ...
  19. 29. April 2025

    Tax treatment of shareholder loan granted to asset-managing ...

    A shareholder loan granted to an asset-managing partnership is not recognized from a tax point of view insofar as the company's loan liability is attributable to its shareholder for tax purposes (Section 39 (2) no. 2 of the German Fiscal Code). According to a recent decision of the Supreme Tax Court, the loan agreement neither leads to deductible income-related expenses for the borrower nor to income from capital assets for the lender but is rather considered a tax-neutral contribution. This would be different only in the case of commercially active partnerships.

    Kategorien: Supreme Tax Court cases
    Schlagwörter: IFRS (Asset Management), shareholder loa ...
  20. 24. Oktober 2021

    Supreme Tax Court rules on arm’s length interest on intercom ...

    In a most recent judgment, the Supreme Tax Court decided on the transfer pricing method to determine an arm's length interest on intercompany loans. In its decision the highest tax court also provides some guidelines on the parameters to be observed from a purely tax point of view. Also, the court takes time to compare the adequacy of the various standard methods under review.

    Kategorien: Supreme Tax Court cases, Transfer pricin ...
    Schlagwörter: arm's length, intercompany loan, compara ...
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