13.11.2024 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. Categories: Official PronouncementsKeywords: wage tax
11.11.2024 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. Categories: Supreme Tax Court casesKeywords: Foreign branch, trade tax deduction
08.11.2024 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. Categories: Supreme Tax Court casesKeywords: consideration in kind, heat supplies
08.11.2024 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. Categories: Official PronouncementsKeywords: wage tax
06.11.2024 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. Categories: From EuropeKeywords: Taxation of digital economy, digitalizat ...
30.10.2024 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。 Categories: Japan Business Network (JBN) NewsflashKeywords: Japan
28.10.2024 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. Categories: Supreme Tax Court casesKeywords: cross-border commuters, severance paymen ...
25.10.2024 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. Categories: Supreme Tax Court casesKeywords: Data processing
25.10.2024 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. Categories: European Court of JusticeKeywords: early repayment, loan
25.10.2024 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. Categories: Official Pronouncements, LegislationKeywords: RETT, General Tax Code, Income Tax Act, ...
23.10.2024 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. Categories: Official PronouncementsKeywords: compensation payment, telecommunications
21.10.2024 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。 Categories: Japan Business Network (JBN) NewsflashKeywords: Japan
21.10.2024 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. Categories: Supreme Tax Court casesKeywords: foreign tax credit, switch over provisio ...
18.10.2024 Tax & Legal Newsflash – German Pillar 2 Notification Require ... Pillar 2 Notification Requirement in Germany – Head of the Minimum Tax Group Categories: Legislation, Tax & Legal NewsflashKeywords: Steuern / Tax, Gesetzgebung
16.10.2024 MoF: Credit of foreign corporate tax under previous imputati ... In a most recent circular the Federal Ministry of Finance commented on the method of the foreign corporation tax credit under the formerly applicable German imputation system. The focus of the circular are two judgments of the European Court of Justice as regards the calculation and verification of the creditable corporation tax underlying a dividend from another EU country. Categories: Official PronouncementsKeywords: foreign tax credit, corporate income tax ...
14.10.2024 German-Swiss double tax treaty: Right for taxation during la ... In a most recent judgment, the Supreme Tax Court decided that in a case where an employee working in both Germany and Switzerland until the termination of the employment relationship and thereafter is irrevocably released from his duties with continued payment of his salary, the income from employment pursuant to Art. 15 para. 1 sentence 1 of the double tax agreement between Germany and Switzerland is subject to tax only in Germany as the country of residence. Categories: Supreme Tax Court casesKeywords: employment income, allocation of taxing ...
14.10.2024 Waiver of claims between shareholders in connection with cap ... Where shareholders of a GmbH agreed that payments to the capital reserve are to be allocated on a shareholder-related basis, but in deviation the capital reserve is instead allocated to all shareholders in connection with a capital increase in accordance with their participation quotas, the waiver of an appropriate value adjustment by the shareholder who made the payments may constitute a free gift in favor of the co-shareholders. Categories: Supreme Tax Court casesKeywords: free gift, waiver
11.10.2024 MoF publishes draft of a revised circular on the interest li ... On 10 October 2024 the Federal Ministry of Finance (MoF) published a first draft of a revised BMF circular on the interest limitation provisons in Section 4a Income Tax Act (ITA) and Section 8a Corporate Tax Act (CTA). Due to various amendments which took place in the course of the Act to Promote the Secondary Credit Market (Kreditzweitmarktförderungsgesetz) the tax administration sees the need for revisions. Categories: Official PronouncementsKeywords: interest limitation
11.10.2024 Energy related tax reduction for the renewal of a heating sy ... The Supreme Tax Court decided that the tax reduction for energy-related measures, such as the installation of a modern boiler, can only be granted once the installation has been carried out and the invoice amount has been transferred in full to the account of the installation company. Categories: Supreme Tax Court casesKeywords: Energy, renewable energy
11.10.2024 「欧州（EU）AI規制法」の解説 2024年5月21日、生成AIを含む包括的なAIの規制である「欧州（EU）AI規制法」が成立しました。今後、EU官報での公布から20日後に発効し、規制内容に応じて2030年12月31日までに段階的に施行されていきます。 本コラムでは、初めての国際的な包括的AI規制といえる欧州（EU）AI規制法の概要を紹介するとともに、企業への影響と求められる対応について考察します。 Categories: Japan Business Network (JBN) NewsflashKeywords: Japan
