Tax & Legal

Categories: All (1651 found)

1. 21.03.2025

   Extended limited tax liability if income is subject to U.K. ...

   A taxpayer who immigrated to the U.K. and who exercised his right under U.K. tax law to pay tax on income not earned in the U.K. on a "remittance basis" is caught by the preferential taxation regime of Sec. 2 (2) No. 2 Foreign Tax Act and subject to extended limited tax liability in Germany.

   Categories: Supreme Tax Court cases

   Keywords: extended tax liability, preferential tax ...
2. 21.03.2025

   ECJ: Contract with juvenile sports talent for participation ...

   An agreement under which a sportsman of minor age is obliged to share part of his future income once he becomes a professional athlete may be in breach of the Directive on unfair terms in consumer contracts. The European Court of Justice held, that the national court must assess the unfairness of such a term by considering whether a legal clause to that effect is plain and intelligible as regards the financial consequences of the commitment.

   Categories: European Court of Justice

   Keywords: athletes
3. 17.03.2025

   Tax treatment of awards for scientific publications

   In a most recently published decision, the Supreme Tax Court held that a financial science award can only be regarded as taxable income from employment if it is awarded to the employee for services rendered to his employer.

   Categories: Supreme Tax Court cases

   Keywords: income from employment, award
4. 17.03.2025

   Hidden profit distributions in the case of stock corporation ...

   The Supreme Tax Court decided that remuneration agreements (for profit related bonuses and sales bonuses) between a stock corporation (AG) and a member of the management board who is also a minority shareholder are generally to be recognized for tax purposes. Only in exceptional cases are they treated as a hidden profit distribution, specifically if there are clear indications in individual cases that the supervisory board of the AG has unilaterally focused on the interests of the management board member in the remuneration agreement.

   Categories: Supreme Tax Court cases

   Keywords: hidden distributions
5. 17.03.2025

   No deduction of foreign taxes for trade tax purposes within ...

   The Supreme Tax Court decided that the portfolio dividends received by the controlled company within a tax group from domestic and foreign corporations via an investment fund are subject to trade tax in full. A deduction of foreign withholding taxes in accordance with Section 34c (2) of the German Income Tax Act is not possible when determining the trade income tax basis of the tax consolidation group (Organschaft).

   Categories: Supreme Tax Court cases

   Keywords: foreign tax credit, trade tax group
6. 15.03.2025

   Restriction to offset losses from tax deferral models not un ...

   Section 15b Income Tax Act dealing with the restriction of loss utilization for tax deferral models does not presuppose that an investment is not economically sensible or has not proved particularly successful. The restriction for an offset and deduction of losses from tax deferral models is also constitutional in the case of a so-called definitive loss. This was currently decided by the Supreme Tax Court who hereby confirmed its previous case law on this matter.

   Categories: Supreme Tax Court cases

   Keywords: loss offset, tax deferral scheme, tax lo ...
7. 13.03.2025

   ECJ: Higher gift tax for foreign family foundation in breach ...

   The Cologne Tax Court has asked the European Court of Justice for a preliminary ruling regarding the favorable inheritance tax classes for domestic family foundations which are not available to foreign family foundations. The Cologne tax court has doubts as to whether this different treatment is in line with the principle of free movement of capital. In his Opinion delivered today the Advocate General sees no infringement of EU law.

   Categories: From Europe

   Keywords: family foundation, foreign foundation
8. 12.03.2025

   Commission responds to unjustified US steel and aluminum tar ...

   In response to the imposition of new and unjustified US tariffs on EU steel and aluminum imports, the Commission has launched swift and proportionate countermeasures on US imports into the EU.

   Categories: From Europe

   Keywords: customs, third country imports
9. 11.03.2025

   Update: 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 Europe

   Keywords: Taxation of digital economy, digitalizat ...
10. 10.03.2025

    MoF: Questions regarding the income tax treatment of specifi ...

    On 7 March 2025, the Federal Ministry of Finance (MoF) published a revised circular on specific questions regarding the income tax treatment of certain crypto assets in Germany.

    Categories: Official Pronouncements

    Keywords: crypto asset
11. 10.03.2025

    No domestic residency in case of rental of German property

    The Münster Tax Court has rejected an earlier decree of the Federal Ministry of Finance according to which entrepreneurs based abroad who own a rented property located in Germany are treated as being resident in Germany if the otherwise exempt rentals are subject to VAT by way of a waiver pursuant to Section 9 VAT Act.

    Categories: Supreme Tax Court cases

    Keywords: permanent establishment (PE), property r ...
12. 07.03.2025

     損失が生じている非居住者に対する配当源泉税還付に関する欧州 ...

    2024年12月19日、欧州司法裁判所は、配当に係る源泉税について受領者が居住者か非居住者かにより取扱いが異なることが、EU機能条約第63条に基づく資本移動の自由の原則に違反するとの判決を下しました。本Newsflashでは、当該判決の概要および在独日系企業への影響について解説します。

    Categories: Japan Business Network (JBN) Newsflash

    Keywords: Japan
13. 07.03.2025

    Special requests after conclusion of agreement for purchase ...

    In two similar decisions the Supreme Tax Court held that amounts charged for subsequent special requests for a property yet to be built are subject to real estate transfer tax if there is a legal relationship to the original property purchase agreement. These costs are then assessed in a subsequent separate tax notice. However, this does not apply to house connection costs if the property buyer has already agreed to assume these costs in the (original) property purchase agreement.

    Categories: Supreme Tax Court cases

    Keywords: property, real estate transfer tax
14. 06.03.2025

    Five Member States to pay financial penalties for failing to ...

    Following a failure to fulfil their obligations, five Member States are held liable by the European Court of Justice to pay financial penalties for failing to transpose the Whistleblowers directive. They must pay a lump sum to the Commission; Estonia, if it has still not transposed the directive, must also pay a daily penalty payment.

    Categories: From Europe

    Keywords: Whistleblowing, penalty
15. 03.03.2025

    No liability for incorrect VAT disclosure in rental agreemen ...

    In a recent decision the Supreme Tax Court held that the person designated as the issuer of an invoice can only be held liable if he or she was involved in the creation of the invoice or if the issuance is otherwise attributable to him or her as representative or by proxy. An incorrect VAT statement in the invoice caused by the previous owner cannot be attributed to the purchaser of the property.

    Categories: Supreme Tax Court cases

    Keywords: incorrect VAT
16. 03.03.2025

    Federal Constitutional Court to decide on solidarity surchar ...

    The Second Senate of the Federal Constitutional Court has announced that it will shortly deliver its decision on the legitimacy of the solidarity surcharge for the years 2020 and 2021.

    Categories: Constitutional Court

    Keywords: solidarity surcharge
17. 28.02.2025

    ECJ confirms German ban on certain discounts for online phar ...

    Member States may authorize advertising measures to promote the purchase of unspecified prescription-only medicinal products in the form of price reductions or payments of an exact amount. In a most recent decision, the European Court of Justice also held that Member States may prohibit advertising measures to promote the purchase of the type of medicinal product where vouchers for the subsequent purchase of non-prescription medicinal products and health and care products are offered.

    Categories: European Court of Justice

    Keywords: medicinal products, online advertising
18. 28.02.2025

    Commission to simplify rules on sustainability and EU invest ...

    The European Commission has adopted a new package of proposals to simplify EU rules, boost competitiveness, and unlock additional investment capacity. This is a major step forward in creating a more favorable business environment to help EU companies grow, innovate, and create quality jobs, the Commission says.

    Categories: From Europe

    Keywords: Due Diligence, European Sustainability R ...
19. 26.02.2025

    No tax exemption for contribution of limited partner shares ...

    The change in the shareholder structure of a limited property-owning partnership due to a contribution of the limited partners' shares in the partnership to a shelf-company may be exempt from real estate transfer tax pursuant to Section 6a sentence 1 RETT Act provided that the transferor, i. a., held at least 95% of the shares directly or indirectly or partly directly for an uninterrupted period of five years before the legal transaction took place. This was decided by the Supreme Tax Court in a most recent judgment.

    Categories: Supreme Tax Court cases

    Keywords: real estate transfer tax, change of shar ...
20. 24.02.2025

    Flight training is generally not exempt from VAT

    In a recent judgment the Supreme Tax Court decided that flying lessons to obtain a permit for hobby pilots (private pilot license) are not exempt from VAT.

    Categories: Supreme Tax Court cases

    Keywords: international flight, VAT Exemption
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